Last week was pretty interesting actually, even though we’re in the middle of the summer season. There has been little macro data, hence the market concentrated more on stock-specific situations. Let’s take a look:
-> Global markets rallied on Monday to start the week, boosted, amongst others, by the Chinese government telling people to “prepare for a healthy bull market”. Covid-19 cases were not on the agenda since a while now. In the US gains were led by Amazon (AMZN) crossing a round $3000/shre level and making new all-time highs. Other high-tech bluechips like Microsotf (MSFT) and Google (GOOG) also climbed. Buffett’s Berkshire Hathaway (BRK/B) announced a $10bn deal to buy nat gas assets of Dominion Energy.
-> Tuesday put a pause to the rally as 3 US states have paused reopening due to the new cases spike. OK, let’s show a Covid-19 case graph here. that’s how it look as of now in US:
-> The wobbling continued up until Thursday.
-> Tech shares again substantially outperformed and Nasdaq kept making new highs, while SP500 and Dow struggled for any gains. This was mostly seen on Thursday.
-> Equities resumed the rally on Friday to end the week at highs.
-> SP500 formed a so called Golden Cross on Friday (50 moving avergage up through 200 moving average), which technicians read as a bullish sign. “Recession Golden Crosses indicate an improving equity market during periods of economic stress,” Stephen Suttmeier, Bank of America’s chief equity technical strategist said.
-> Effective weekly index changes: S&P500 +1.8%, Nasdaq +4%, EuroStoxx600 +0.4%, DAX -0.8%, Nikkei225 +0.0%.
Other markets events:
-> Bonds: US yield curve (10y-FF) flattened to 0.53% on virus woes, German curve (10Y Bunds-3M) was mostly unchanged 0.10% with 10Y Bunds at -0.46%, High Yield Spreads at 6% – not much action.
-> Commodities (ex oil): Gold added 80bps as it still flirts with the $1800/ounce lvl
-> Oil: +1% on week with not much volatility
-> Currencies: Dollar weakened a bit this week with DXY (Dollar Index) -0.5%, EURUSD +0.4%.
Major macro events: (times are CET):
Next Week’s major macro events:
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