𝗜𝘁’𝘀 𝗯𝗲𝗲𝗻 𝗮 𝘀𝗵𝗼𝗿𝘁𝗲𝗿 𝘄𝗲𝗲𝗸. 𝗘𝗾𝘂𝗶𝘁𝗶𝗲𝘀 𝗳𝗲𝗹𝗹 𝗲𝘃𝗲𝗿𝘆 𝘀𝗶𝗻𝗴𝗹𝗲 𝗱𝗮𝘆 𝘁𝗵𝗶𝘀 𝘄𝗲𝗲𝗸. 𝗜𝗻𝗱𝗶𝗰𝗲𝘀 𝗶𝗻 𝗨𝗦 𝗮𝗻𝗱 𝗘𝗨 𝗲𝗻𝗱𝗲𝗱 𝗶𝗻 𝘁𝗵𝗲 𝗿𝗲𝗱 𝗳𝗼𝗿 𝘁𝗵𝗲 𝘄𝗲𝗲𝗸, 𝘄𝗵𝗶𝗹𝘀𝘁 𝗔𝘀𝗶𝗮 𝗼𝘂𝘁𝗽𝗲𝗿𝗳𝗼𝗿𝗺𝗲𝗱 𝗮𝗴𝗮𝗶𝗻. 𝗠𝗮𝗷𝗼𝗿 𝗿𝗲𝗮𝘀𝗼𝗻𝘀 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗿𝗲𝘁𝗿𝗲𝗮𝘁 𝗮𝗿𝗲 𝗗𝗲𝗹𝘁𝗮 𝘃𝗮𝗿𝗶𝗮𝗻 𝗰𝗮𝘀𝗲𝘀, 𝗦𝗲𝗽𝘁𝗲𝗺𝗯𝗲𝗿’𝘀 𝘃𝘂𝗹𝗻𝗲𝗿𝗮𝗯𝗶𝗹𝗶𝘁𝘆, 𝗽𝗲𝗿𝘀𝗶𝘁𝗲𝗻𝘁 𝗵𝗶𝗴𝗵 𝗶𝗻𝗳𝗹𝗮𝘁𝗶𝗼𝗻 𝗿𝗲𝗮𝗱𝗶𝗻𝗴𝘀 (𝗣𝗣𝗜 𝘁𝗵𝗶𝘀 𝘄𝗲𝗲𝗸), 𝘁𝗮𝗽𝗲𝗿𝗶𝗻𝗴 𝗮𝗻𝗻𝗼𝘂𝗻𝗰𝗲𝗺𝗲𝗻𝘁 𝗳𝗲𝗮𝗿𝘀.
$SPX500 is now 2% off its recent ATHs. The Fear&Greed Index is as low as 34 already. I have a feeling we’re repeating the case from the start of Summer, when a tiny correction for equities cause a big increase in nervosity among investors. This is how the Wall of worry usualy builds up and is rarely a sign of a bigger correction ahead. We’ll see how it plays out this time around.
👉 US markets were closed on Monday.
👉 On Tuesday “Goldman Sachs downgraded its outlook for U.S. economic growth, saying in a note to clients that the ramifications from the delta variant and the end of fiscal stimulus measures will dent consumer spending. Goldman lowered its GDP growth projection to 5.5% for the fourth quarter, down from 6.5% in earlier projections. The firm expects annual growth to be 5.7% in 2021, below the 6.2% expected on average by other shops.” (CNBC)
👉 On Wednesday we got the new job openings data, which soared to 10,9m in July, way above the 9,9m estimates. It was yet another worrisome labour dataset after the recent weak NFP reading. This spooked investors.
👉 Meme stock GameStop was in the center of interest on Thursday, as retailers played a big comeback form an over 10% intraday drop caused by lack of an outlook for coming quarters post its quarterly report.
👉 Biggest drop in equities came on Friday. August PPI numbers hit at 8,3% yoy, above estimates, confirming still very high inflationary pressures in the economy. the Dow dropped 270 pts. “Apple was the biggest laggard weighing on the Dow, down 3.3%. The tech giant can no longer force developers to use in-app purchasing, a federal judge ruled Friday in a closely watched trial between Apple and Epic Games.” (CNBC)
👉 𝙀𝙛𝙛𝙚𝙘𝙩𝙞𝙫𝙚 𝙬𝙚𝙚𝙠𝙡𝙮 𝙞𝙣𝙙𝙚𝙭 𝙘𝙝𝙖𝙣𝙜𝙚𝙨: $SPX500 -1,7%, $NSDQ100 -1,4%, EuroStoxx600 -1,2%, $GER30 -1,1%, JPN225 +4,3%.
𝗢𝘁𝗵𝗲𝗿 𝗺𝗮𝗿𝗸𝗲𝘁𝘀 𝗲𝘃𝗲𝗻𝘁𝘀:
👉 𝘽𝙤𝙣𝙙𝙨: the US yield curve (10y-FF) at 129bps, the German curve (10Y Bunds-3M) at 34 bps. EuroArea AAA-rated bonds yield at 34bps – both wider on ECB’s taper plans. High Yield Spreads at 3,2. 👉 𝘾𝙤𝙢𝙢𝙤𝙙𝙞𝙩𝙞𝙚𝙨 (𝙚𝙭 𝙤𝙞𝙡): $GOLD -2,3% on week. 👉 𝙊𝙞𝙡: +0,9% on week 👉 𝘾𝙪𝙧𝙧𝙚𝙣𝙘𝙞𝙚𝙨: DXY (Dollar Index) +0,7% on week, EURUSD -0,6%.
𝗠𝗮𝗷𝗼𝗿 𝘀𝘁𝗼𝗿𝗶𝗲𝘀 𝗳𝗼𝗿 𝗻𝗲𝘅𝘁 𝘄𝗲𝗲𝗸: 👉 Tuesday – US CPI for August 👉 Thursday – US Retail Sales 👉 Friday – Consumer Sentiment
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