Daily Digest:
w/c 4 March 2024: US stock averages higher again to end the week, prodding at record levels; upcoming week's focus on the Fed's Powell testimony before Congress and the US Employment report

Stocks advance with upbeat earnings, despite Fed Hawks

Intermediate

Macroeconomic/ geopolitical developments

  • US third-quarter earnings results are largely meeting or beating expectations.
  • About a fifth of S&P 500 companies have reported Q3 results, and approximately 73% have exceeded forecasts.
Wall street
  • Investor sentiment has been very negative, possibly assisting the market rebound, the Bank of America Fund Managers monthly survey showed investors were holding the most cash since 2001.
  • This is despite higher yield moves for US Treasuries as Fed speakers maintained a hawkish tone.
  • In the UK, Prime Minister Liz Truss resigned after just 45 days, triggering another leadership content, with Rishi Sunak favourite to be the next PM.
Liz Truss resigns
  • The US announced a release from the U.S. Strategic Petroleum Reserve.
  • Japanese authorities allegedly intervened in Forex markets Friday to support the Japanese Yen against the US Dollar.

Global financial market developments

  • The major US stock averages surged higher last week.
  • All three major US averages posted their best weekly gain since June, after the prior week saw the S&P 500 drop 2.4% on Thursday 13th (CPI day) and then close up 2.6%, the fifth largest intraday reversal from a low in the history of the index.
  • European equity indices were notably higher on the week too.
  • US 10yr yields were higher again, surging to its highest since 2008!
  • US Dollar dipped, as DXY setback from near a multi-decade peak.
  • GBPUSD gained after Prime Minister Liz Truss resigned.
  • USDJPY plunged after rumoured intervention.
  • Gold plunged and bounced to ease negative pressures.
  • Oil prices proved solid despite the U.S. Strategic Petroleum Reserve release announced.
  • Copper remains in a consolidation pattern.

Key this week

  • Central Bank Watch: We get the Bank of Canada (BoC) interest rate decision, statement and press conference on Wednesday and the same from the European Central Bank (ECB) on Thursday, then from the Bank of Japan (BoJ) on Friday.
  • Macroeconomic data: A busy week, with standouts the global S&P Global Flash PMI on Monday, US GDP, PCE and Durable Goods on Thursday and Friday, plus German GDP and CPI also Friday.
  • Earnings data: Earnings season continues and a big week for tech as we get Alphabet (GOOG), Microsoft (MSFT), Meta (Meta), Boeing (BA), Apple (AAPL) and Amazon (AMZN).
Apple to report
DateKey Macroeconomic Events
24/10/22Global S&P Global Flash PMI
25/10/22German IFO
26/10/22Australian CPI; China GDP, Retail Sales and Trade data; BoC interest rate decision, statement and press conference
27/10/22ECB interest rate decision, statement and press conference; US GDP, PCE and Durable Goods
28/10/22BoJ interest rate decision, statement and press conference; German GDP and CPI; US PCE

Editor in chief

Steve Miley is the Market Chartist and has 32 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Mar... Continued

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