Daily dose of financial insights for investors and traders; plus six companies to watch including Fortescue Metals and Tesla

Jessica Amir
Market Strategist

Summary:  Five Minute Daily Dose of Financial Insights for Investors and Traders; covering what to watch this week in economic news, what could move markets and why to watch the NZDAUD. Plus, the latest from these six companies; Fortescue, Oz Minerals, Cisco, Ross Stores, Tesla, and Twitter.

What you need to know about markets now

  • The major US indices closed in the red last week, but the S&P 500 managed to hold onto an ~11% gain from October 10, while the Nasdaq 100 managed to hold its gain of 9.2% since then. US stock and bond markets will be closed for Thanksgiving holiday Thursday.
  • The Australian share market closed on the back foot as well last week, but holds a gain of 10.4% from October 3. The futures suggest the ASX200 could open 0.3% up on Monday.
  • In Asia, Hong Kong’s Hang Seng ended the week up, extending its three-week rebound of 21%. The Futures indicate the Hang Seng could open 0.4% lower.
  • The economic focus this week is on; OECD Economic Outlook Tuesday, FOMC minutes on Wednesday, and more Fed Speeches will be on Tuesday which could provide more hints on how high US rates may go and may cause volatility in the indices and invoke fear selling like we saw last week.
  • In China, focus this week will be on; will authorities responding to the first Covid-related death in almost six months, sparking concerns it could lead to tighter restrictions, despite China implementing new 20-point tweaking covid restriction plan.
  • In commodities focus is on those pegged to Chinese demand, such as iron ore, copper, and lithium. Speaking of iron ore; it could be volatile week for iron ore and iron ore stocks as India removed the export tax on steel products including iron ore. Oil will also be in focus with WTI falling 1.9% and after suffering its biggest weekly drop since April, losing 10% last week. Oil is now trading at $80.00, its lowest level since September.
  • In earnings: Virgin Money, Deere & Co, Dell will be a focus this week with their earnings to be released.
  • In FX: focus will be on NZD with RBNZ to poised to hike by 0.75%. A currency to watch will be the NZDAUD – given the RBNZ is hiking harder than the RBA can and this theoretically supports the NZD vs the AUD. 

Six companies to be across include

  1. Fortescue (FMG) with iron ore falling 1.4% but holding onto a monthly gain of 27%. Fortescue Metals shares have gained about 36% in three week after China announced its property rescue plan.
  2. Oz Minerals (OZL) will also be focus down under after BHP increased its takeover offer for the firm. The Copper company OZL has gained 70% since July.
  3. Cisco (CSCO) will also be a focus this week after rising 2.6% on Friday, extending its rebound after reporting stronger than expected earnings and guidance last week. 
  4. Clothing company Ross Stores (ROSS) rose 10% on Friday with traders expecting good Black Friday sales. 
  5. Tesla (TSLA) is in the spotlight after it recalled over 321,000 vehicles in the US because of a tail light issue. It is the latest of multiple Tesla recalls in the US in recent months, including one recall involving over 40,000 vehicles for a possible problem with the EV steering system.
  6. Twitter (TWTR) is also in the news with Elon Musk considering firing more employees, allegedly in sales and partnerships. 


For a global look at markets – tune into our Podcast.



 

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Bank (Schweiz) AG
Beethovenstrasse 33
CH-8002
Zurich
Switzerland

Contact Saxo

Select region

Switzerland
Switzerland

All trading carries risk. Losses can exceed deposits on margin products. You should consider whether you understand how our products work and whether you can afford to take the high risk of losing your money. To help you understand the risks involved we have put together a general Risk Warning series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. The KIDs can be accessed within the trading platform. Please note that the full prospectus can be obtained free of charge from Saxo Bank (Switzerland) ltd. or the issuer.

This website can be accessed worldwide however the information on the website is related to Saxo Bank (Switzerland) Ltd. All clients will directly engage with Saxo Bank (Switzerland) Ltd. and all client agreements will be entered into with Saxo Bank (Switzerland) Ltd. and thus governed by Swiss Law.

The content of this website represents marketing material and has not been notified or submitted to any supervisory authority.

If you contact Saxo Bank (Switzerland) Ltd. or visit this website, you acknowledge and agree that any data that you transmit to Saxo Bank (Switzerland) Ltd., either through this website, by telephone or by any other means of communication (e.g. e-mail), may be collected or recorded and transferred to other Saxo Bank Group companies or third parties in Switzerland or abroad and may be stored or otherwise processed by them or Saxo Bank (Switzerland) Ltd. You release Saxo Bank (Switzerland) Ltd. from its obligations under Swiss banking and securities dealer secrecies and, to the extent permitted by law, data protection laws as well as other laws and obligations to protect privacy. Saxo Bank (Switzerland) Ltd. has implemented appropriate technical and organizational measures to protect data from unauthorized processing and disclosure and applies appropriate safeguards to guarantee adequate protection of such data.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.