Macro: Sandcastle economics
Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.
Access both platforms from your single Saxo account.
Key Stories from the past week: Equity rebound
Saxo
Global stock markets stage a roaring comeback following a several positive points of economic data for the US economy. The US inflation report confirmed that prices are under control and the Fed can afford to cut interest rates soon. Meanwhile, the US consumers showed their confidence by spending more than expected on retail goods allaying slowdown fears. The Fed's St. Louis chief said he supports a rate cut as inflation is back on track and the job market is not overheating.
Earnings Roundup
Some companies also had a reason to celebrate, as they reported better-than-expected earnings. Walmart, the US retail giant, raised its outlook for the year, as it lured more shoppers looking for bargains. In Europe, UBS impressed the investors with its Q2 results and its wealth management unit, which attracted more new money despite the tough market environment.
European Banks
Starbucks rally
But the star of the week was Starbucks, which made a bold move by firing its CEO and hiring Chipotle's CEO Brian Niccol as its new leader. Starbucks shares jumped by 24% on Tuesday, marking its largest one-day gain ever. Starbucks has been facing some challenges in getting customers to splurge on its pricey coffees, as it reported two consecutive quarters of sales declines. Brian Niccol, who joined Chipotle in 2018, has turned the Mexican chain into a success story in the struggling restaurant industry. Now, Starbucks shareholders are eager to see if he can work his magic on the coffee giant as well.
The big rebound in equities
Geopolitical tail risks
However, not everything is rosy in the world. The markets face some serious risks due to two events. First, Iran vows to take revenge for the killing of Hamas' senior leader in Tehran. The retaliation could involve cyber-attacks, infrastructure damage, or proxy violence. Second, Ukraine advances deeper into Russian territory, causing a gas crisis in Europe. Prices stay high at €40 a megawatt-hour despite low demand.
Commodities Weekly
The big macro event in week 34 comes from the Jackson Hole economic symposium with the focus on Jerome Powell’s insights which are expected Friday. Thursday is the day for data focus with PMI figures from the Eurozone and the US as well as the weekly US Initial jobless claims. The earnings season is less busy but Palo Alto Networks (Mon), the world’s largest cyber security company, will be the key watch on earnings. Other highlights include Snowflake (Weds), Target (Weds), Baidu (Thurs).
Latest Market Insights
Quarterly Outlook 2024 Q3
Sandcastle economics
-
Bonds: What to do until inflation stabilises
Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain inflation and evolving monetary policies.
-
Equities: Are we blowing bubbles again
Explore key trends and opportunities in European equities and electrification theme as market dynamics echo 2021's rally.
-
FX: Risk-on currencies to surge against havens
Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperform in Q3 2024.
-
Commodities: Energy and grains in focus as metals pause
Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities in Q3 2024.
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/en-gb/legal/disclaimer/saxo-disclaimer)