Weekly Review (July 10-14)
STOCKS
Wall Street stocks advanced on Thursday for a fourth day in a row after fresh data showed that inflation in the US came in lower than expected. After Wednesday’s consumer price index data, June’s producer price index rose less than anticipated. On the other hand, the lower-than-expected weekly jobless claims number was a reminder of continued labor market tightness. The S&P 500 climbed 0.85%, the Dow Jones added 0.14%, and the Nasdaq Composite advanced 1.58%. Both the S&P 500 and the Nasdaq Composite closed at their highest levels in over a year. In Asia, the Nikkei 225 finished marginally lower after a solid decline earlier in the week in response to weaker-than expected machinery orders, factory inflation and a rising unemployment rate data. MSCI's broadest index of Asia-Pacific shares added 0.7% during the session to notch a 5.4% weekly advance.
14.07.2023
1087
Weekly Review (July 3-7)
STOCKS
After indecisive trading at the start of the week, most global equity markets turned lower as investor concerns resurfaced. Earlier in the week, US stocks finished slightly lower as investors digested weak economic data and hawkish minutes from the US Federal Reserve's latest meeting. A report showed that new orders for US-made goods rose less than expected in May. Also, investors were spooked by the latest discouraging signal from China’s economy where growth in services industry slowed by more than expected last month. On Thursday, Wall Street stocks closed lower after reports suggested the US job market remains much more resilient than expected. A strong labor market could also push the Federal Reserve to keep interest rates higher for longer in its campaign to defeat high inflation. The S&P 500 fell 0.8%, the Dow lost 1.1%, and the Nasdaq fell 0.8%.
07.07.2023
1105
Weekly Review (June 26-30)
STOCKS
Wall Street stocks rallied earlier in the week amid a resurgence in tech stocks. Economic data soothed investor worries about an imminent recession. Fresh reports showed that US consumer confidence increased to a near 1-1/2 year high this month, while new orders for key US-manufactured capital goods unexpectedly increased 0.7% in May. On Thursday, US stocks finished mostly higher, with financial sector leading the gains on upbeat tones from the banking sector and the economy. Financial stocks jumped after 23 of the country’s biggest banks passed annual “stress tests”. Meanwhile, the US economy saw a revised GDP reading of 2% in the first quarter. Elsewhere, Fed Chairman Powell downplayed concerns that the central bank might be at risk of going too far with its rate hikes. In Asia, the Shanghai Composite added 0.62% ahead of the weekend even as the data showed that manufacturing activity contracted for a third straight month in June while also posting its weakest non-manufacturing PMI reading this year.
30.06.2023
1130
Weekly Review (June 19-23)
STOCKS
Equities came under more intense selling pressure this week after Powell endorsed the market pricing, saying that decisions will be made meeting by meeting. At the same time, the Fed governor highlighted that nearly all FOMC participants expect to hike 'somewhat further' by year end. On Thursday, however, Wall Street stocks finished mostly higher, with both the Nasdaq Composite and S&P 500 bringing a three-day losing streak to an end. The tech-heavy Nasdaq's solid gain got a boost from momentum stocks led by Amazon, Apple, and Microsoft. Powell, appearing before the Senate Banking Committee reiterated his view that more interest rate hikes are likely in the months ahead. Still, for the time being, the market believes the Fed will raise rates one more time, not two more times as implied by the post FOMC meeting summary. Elsewhere, the Bank of England implemented a larger-than-expected 50 basis point rate hike to tackle Britain's stubborn inflation.
23.06.2023
1136
Weekly Review (June 12-16)
STOCKS
After relatively positive start to the week, stocks hesitated marginally after the Federal reserve held rates on hold, as expected, and expressed a more aggressive tone on the outlook for its monetary policy. The decision to leave rates unchanged was expected by investors, given the macroeconomic conditions. At the same time, the central bank indicated that this pause is likely not going to last. This, coupled with a more hawkish dot plot sent stocks lower. By the way, the dots pushed the median expectation to a funds rate of 5.6% by the end of 2023 as the Fed focuses on cutting inflation to its longstanding target. The next day, Wall Street stocks rallied as investors shook off the Fed’s hawkish hold while also digesting news the European Central Bank further raised rates. Meanwhile, the data showed US retail sales were stronger than expected in May. At the closing bell, the S&P 500 was up 1.26%, the Dow Jones Industrial Average added 1.22% and the technology-heavy Nasdaq Composite climbed roughly 1.15%.
16.06.2023
1145
Weekly Review (June 5-9)
STOCKS
Stocks were mixed during the week, with investors cautious amid jitters surrounding central banks. Investors were surprised by the Bank of Canada’s unexpected interest rate hike after a four-month pause. After the meeting, Fed-funds futures traders have priced in a hike of at least 25 basis points in July. As for the next week’s meeting, markets look for the central bank to leave rates on hold. On Thursday, Wall Street equities regained some of the momentum due to a rebound in the tech sector. The Dow Jones Industrial Average rose 0.5%, the S&P 500 gained 0.62%, and the Nasdaq Composite added 1.02% to lead the gains. Markets were also helped by a drop in volatility as investors switched to an eventful economic and policy calendar next week. The S&P 500 is on pace for its fourth straight positive week for the first time since last August, while the Dow is headed for a second consecutive week of gains for the first time since April.
09.06.2023
1120
Weekly Review (May 29-June 2)
STOCKS
Stock markets were mixed-to-lower during the week in a nervous anticipation of a debt-ceiling deal. US stocks jumped on Thursday as the Senate passed bipartisan legislation backed by President Joe Biden that lifts the government's $31.4 trillion debt ceiling. The agreement suspends the debt limit until January 2025. As such, the S&P 500 rose 0.99%, while the Dow Jones Industrial Average added 0.47%, and the technology-heavy Nasdaq Composite was 1.28% higher. For the week, both the S&P and Nasdaq are on track to finish with modest gains of less than 0.4%. The Dow stands 0.1% lower for the week as of Thursday’s close. In Asia, weak economic data out of China offered another evidence that recovery in the world's second-biggest economy is faltering. China's manufacturing activity PMI fell to 48.2 for May, while services growth weakened to its slowest pace in four months. China's yuan hit a six-month low earlier in the week to bounce ahead of the weekend.
02.06.2023
1147
Weekly Review (May 22-26)
STOCKS
At the start of the week, Wall Street stocks were mixed as investors were in wait-and-see mode as debt-ceiling negotiations continued, with mandatory government spending cuts remaining a major obstacle. Equities failed to attract demand later amid lack of progress in debt ceiling issue resolution. House Speaker Kevin McCarthy said that negotiators remain at odds on spending caps. Treasury Secretary Janet noted that she already sees “some stress in financial markets” as concerns mount that the country could face its first default in history. Elsewhere, the Fed’s meeting minutes indicated that a decision to increase rates at the June meeting would hinge on upcoming economic data. Adding to investor worries, credit ratings agency Fitch put the US on watch for a possible downgrade, citing increased uncertainty over whether the country will raise its debt ceiling. On Thursday, however, the S&P 500 and Nasdaq Composite jumped as investors cheered upbeat quarterly results from Nvidia.
26.05.2023
1136
Weekly Review (May 15-19)
STOCKS
US markets edged higher at the start of the week as President Joe Biden said he’s optimistic about finding an agreement with Republicans over debt ceiling. Wall Street stocks rallied on Thursday to log their highest closes since August, as investors cheered economic data and further progress in resolving the debt-ceiling debate. On the data front, the number of Americans who applied for unemployment benefits last week fell to 242,000, while sales of previously-owned homes in the US fell 3.4% in April for the second month in a row. Elsewhere, Dallas Fed’s Logan said economic data don’t support a pause the central bank’s rate-hiking campaign. The S&P 500 rose 0.94%, the Dow Jones Industrial Average gained 0.3%, and the Nasdaq Composite advanced 1.51%. In Asia, sentiment was hurt by concerns over the fragile recovery in China. Also, Chinese and Hong Kong stocks were dragged down by Alibaba Group Holding Ltd as the company reported a lower-than-expected 2% rise in quarterly revenue.
19.05.2023
1097
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