US stocks experienced another volatile session overnight as investors switched their focus to European banks as Credit Suisse plunged -24% although encouragingly the S&P500 remains above this week’s low, unlike the ASX which is suffering more due to its high composition of banking stocks. While the authorities continue to support financial institutions that are struggling following the rate hikes we believe calm will return over the following weeks and equities can return to trading around more traditional metrics of valuation.
- We continue to look for US stocks to push higher over the coming months regarding decent dips as buying opportunities although SVB et al haven’t helped this thesis.
MM remains bullish on the S&P500 initially targeting the 4100 area
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Overnight we saw crude oil close down almost 4%, its largest drop in over a year as banking fears increased concerns that Chinese oil demand won’t recover anytime soon – nobody wants to go home long as negative news continues to flow across trading screens. Overnight the US Energy Sector closed down -5.4% providing a weak read through for the local related stocks this morning.
- We are not looking to increase our oil exposure into current weakness but major support from 2021 is looming fast.
MM is neutral on crude oil
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