19/09/2024 09:29

Global Markets

US equities finished lower after the Feds move overnight, but we don’t read too much into a 1-day knee-jerk reaction. Let's go back in history and look at what happens after the Fed starts cutting interest. One binary characteristic does stand out, which is probably a function of market expectations into the cutting cycle:

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01/08/2024 09:40

Global Markets

US equities surged higher overnight following Jerome Powell's dovish comments. If earnings reports this week can provide some support, the recent market wobbles could quickly be over. However, even after last night's gains, the NASDAQ still finished July down -0.8%. Nvidia’s best session since February was inspired by better-than-expected results from rival Advanced Micro Devices (AMD US), which re-ignited optimism in the semiconductor space.

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25/06/2024 09:17

Global Markets

US equities experienced a mixed session overnight with the  banks strong, Goldman Sachs (GS US) closed up over 2% while the Energy Sector was best on ground with Chevron (CVX  US) also advancing over 2%.

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18/06/2024 09:21

Global Markets

US equities pushed ever higher overnight, with the S&P500 delivering its 30th record this year despite a small increase in bond yields. US stock market gains have hardly ever been this one-sided as tech companies accelerate higher while other risk assets largely tread water. Stock traders were unwilling to sell in a thin market with Juneteenth National Independence Day being celebrated on the 19th – we could see something similar into the EOFY. It was also encouraging to see default rates retreat in May as the US economy remains solid, and a few rate cuts and corporate America could be cheering.

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14/06/2024 09:50

Global Markets

US stocks are breaking out on the upside, led by the tech sector and, in particular, AI. For example, Apple (AAPL US) surged to new highs this week, regaining the top spot as the largest US company after it unveiled its plans for AI in its products.  Overall, the week has been a good one for bonds, sending yields lower, although the Feds Dot Plot now suggests only one cut in 2024 and four in 2025, though that was produced prior to softer CPI data.

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13/06/2024 08:51

Global Markets

The US Tech Sector again led the broad market up to fresh all-time highs, with Apple (AAPL US) and Nvidia (NVDA US) both catching the eye, advancing +2.9% and +3.6%, respectively. The Feds news wasn’t great overnight, but all they really did was continue to “kick the can down the road”. Five rate cuts by Christmas 2025 will still deliver a large tailwind for equities over the next 18 months. We are now adopting a “wait and see”  approach to US stocks as they approach our initial target area.

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31/05/2024 09:17

Global Markets

US stocks and, in particular, tech struggled overnight as the market was refreshingly driven by corporate news flow as opposed to speculation around interest rates, but there was some major volatility under the hood, e.g. Salesforce -20%, Dell -15% (after hours) Kohl dept.  store -23%, HP +17%, Footlocker +15%, Best Buy +13%, Dell -15% and Birkenstock +12%. As MM has alluded to recently, “Hold on tight; volatility is set to increase in both directions”.

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06/05/2024 09:19

Equity Indices

The ASX200 rallied +0.7% higher last week as easing bond concerns saw the rate-sensitive stocks/sectors recover strongly, e.g. The Real Estate +3.2%, Tech +2.3%, and Consumer Discretionary +2.1% sectors advanced strongly. After Fridays market friendly employment data, we expect more of the same at the start of the second week of May, aided by a more than 3% surge by US Tech following Apple’s(AAPL US) earnings beat – the US2.8 trillion dollar stock surged almost 6%.

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02/05/2024 09:39

Global Markets

US stocks experienced a choppy session overnight through and after the Fed's commentary. The AI-related names had a noticeably tough night following disappointing reports from Advanced Micro Devices (AMD US), which slid 8.9% and Super Micro Computer (SMCI US), which tumbled 14% on weaker-than-expected revenue. The goliath in the room fared better, with Nvidia (NVDA US) only ending the session down -3.89%.

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30/04/2024 09:05

Global Markets

US stocks improved overnight, with all three major U.S. indexes rising modestly to start a big week for earnings and economic updates. Earnings season will commence in earnest tomorrow when results from Amazon.com, McDonald’s, and Coca-Cola are delivered. The FED’s policy announcement on Wednesday is likely to show if investors are correct to be losing hope of interest-rate cuts in 2024, while Friday’s jobs report will give more clues on the strength of the US economy.

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