Hi Smart Investors! I hope you’re doing all right. It’s been more of a quiet week really, but here’s what’s up:
-> The market managed to reign in the recent burst of downside volatility from Thursday the week before and from a technical perspective it defended the 200 moving average support level on Monday.
-> Post Monday the volatility was much smaller this week and market traded in a much more narrow range .
-> What stood out was the continued historic surge in the activity of small caps and penny stocks. Among the biggest moves was seen in UONE US (Urban One) that serves black and underrepresented communities (stock up form $1-2 to over $25 since the start of June after US anti-racism protests) and MRGE US (Mirage Energy), which said that it secured Mexico natural gs pipeline financing. See graphs below, as of Thursday 18.06.2020. There’s hundreds of stocks like this lately in US. ONE SIMPLE CLUE: risk acceptance is highly elevated! Be aware….
-> On Friday the market got wobbly on returnign fears of 2nd coronavirus wave, as Apple said it’s reclosing a total of 11 stores in Florida, Arizona, South Carolina and North Carolina. Eventually US markets eked out OK weekly gains though.
-> Effective weekly index changes: S&P500 +1.8%, Nasdaq +3.7%, EuroStoxx600 -+3.2%, DAX 3.2%, Nikkei225 +0.8%.
Other markets events:
-> Bonds: US yield curve (10y-FF) was stable around 0.6%, German curve (10Y Bunds-3M) also stabe ending 0.11% with 10Y Bunds at -0.45%, High Yield Spreads at 6.1%.
-> Commodities (ex oil): Gold almost flat on week +0.3% and not much action
-> Oil: added 8.9% on week as fundamentals keep improving and demand seems OK
-> Currencies: Dollar generally gained slighltly this wwek, but price action was fairly muted this week. DXY (Dollar Index) +0.4%%, EURUSD -0.7%.
Major macro events: (times are CET):
Next Week’s major macro events:
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