𝘼 𝙨𝙡𝙞𝙜𝙝𝙩𝙡𝙮 𝙘𝙤𝙧𝙧𝙚𝙘𝙩𝙞𝙫𝙚 𝙬𝙚𝙚𝙠 𝙞𝙨 𝙗𝙚𝙝𝙞𝙣𝙙 𝙪𝙨 𝙤𝙣 𝙚𝙦𝙪𝙞𝙩𝙮 𝙢𝙖𝙧𝙠𝙚𝙩𝙨. 𝘾𝙤𝙢𝙢𝙤𝙙𝙞𝙩𝙞𝙚𝙨 𝙬𝙚𝙧𝙚 𝙨𝙩𝙖𝙗𝙡𝙚 𝙖𝙣𝙙 𝙨𝙤 𝙬𝙚𝙧𝙚 𝙩𝙝𝙚 𝙮𝙞𝙚𝙡𝙙𝙨 𝙤𝙣 𝙢𝙖𝙟𝙤𝙧 𝙜𝙤𝙫𝙚𝙧𝙣𝙢𝙚𝙣𝙩 𝙞𝙨𝙨𝙪𝙚𝙨 𝙩𝙝𝙞𝙨 𝙬𝙚𝙚𝙠. 𝙏𝙝𝙚 𝙢𝙖𝙧𝙠𝙚𝙩 𝙨𝙚𝙚𝙢𝙨 𝙩𝙤 𝙝𝙖𝙫𝙚 𝙢𝙖𝙞𝙣𝙮 𝙗𝙚𝙚𝙣 𝙛𝙤𝙘𝙪𝙨𝙞𝙣𝙜 𝙤𝙣 𝙙𝙞𝙜𝙚𝙨𝙩𝙞𝙣𝙜 𝙩𝙝𝙚 𝟭𝙌𝟮𝟭 𝙣𝙪𝙢𝙗𝙚𝙧𝙨.
What’s notable is that the market seems a little tired. There’s been quite a few positive earnings surprises, which were followed by a sel-off in certain equities. Example: $INTC (Intel) . Indices still hover around their ATHs though. 3 down days, 2 up days, a mixed bag.
𝗟𝗮𝘀𝘁 𝘄𝗲𝗲𝗸
👉 Monday and Tuesday saw equities vulnerable. Reopening plays led declines with names like Boeing, Goldman Sachs int he front.
👉 The declines came “as the World Health Organization warned that global coronavirus infections were edging toward their highest level in the pandemic.” (CNBC)
👉 Netflix showed a substantial subscriber miss and the copmany fell as much as 7% on Wednesday. Still to broad market managed to halt the losing streak from the two previous days. Small caps (Russell 2000) were the best performing asset class (up 2,4%)
👉 So far “companies that topped earnings estimates have actually averaged a one-day drop of 0.62% in their shares, according to data from Bespoke Investment Group” (CNBC).
👉 On Thrusday President Biden announced that he might propose raising capital gains tax on richest citizens (from 20% to 39,6% or 43,4% inclusing the next investement income tax of 3,8%). Stocks sold off again, even though strategists warned that the final bill migth look much different than the proposal itself, as the split in the US Senate is very tight.
👉 Some calls were heard as well that inflation is finally biting its way throught the numbers reported by the companies. Some inflation is usuallya good thing for corporations with enough pricing power and for stock sin general. Friday ended up.
👉 Other asset classes like commodities and bonds were pretty boring this week really.
👉 𝙀𝙛𝙛𝙚𝙘𝙩𝙞𝙫𝙚 𝙬𝙚𝙚𝙠𝙡𝙮 𝙞𝙣𝙙𝙚𝙭 𝙘𝙝𝙖𝙣𝙜𝙚𝙨: $SPX500 -0,1%, $NSDQ100 -0,7%, EuroStoxx600 -0,8%, GER30 -1,2%, JPN225 -2,2%.
𝗢𝘁𝗵𝗲𝗿 𝗺𝗮𝗿𝗸𝗲𝘁𝘀 𝗲𝘃𝗲𝗻𝘁𝘀:
👉 𝘽𝙤𝙣𝙙𝙨: yields stabilized, the US yield curve (10y-FF) at 156bps, the German curve (10Y Bunds-3M) at 38 bps. EuroArea AAA-rated bonds yield at 36bps. High Yield Spreads at 3,2.
👉 𝘾𝙤𝙢𝙢𝙤𝙙𝙞𝙩𝙞𝙚𝙨 (𝙚𝙭 𝙤𝙞𝙡): GOLD +0%
👉 𝙊𝙞𝙡: -1,6% on week.
👉 𝘾𝙪𝙧𝙧𝙚𝙣𝙘𝙞𝙚𝙨: DXY (Dollar Index) -0,8% on week, EURUSD +1%.
Best, GlobalAlphaS
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