Treading water, Micron outlook and IPO nightmare
Head of Equity Strategy, Saxo Bank Group
Summary: Equity markets have zero momentum left and some markets are even rolling over such as KOSPI 200 which still finds itself in a bear market. Macro figures continue to be weak and next week's crucial US PMI figures could end up being crucial for market sentiment. While the general equity market sees little energy IPO stocks are broadly under pressure with Peloton shares down on their first day of trading.
Judging from yesterday’s equity session markets are clearly treading water with no direction in mind. Macro figures continue to indicate the economic slowdown will continue and last night after the US close Micron Technology delivered a worse than expected outlook for its current fiscal quarter citing US-China trade war uncertainty and general economic uncertainty. Micron’s outlook will drag down other semiconductor stocks and the change in sentiment was evident in Asia with KOSPI 200 down for the third straight day. South Korean equities remain in a bear market and is a good thermostat on the China and global manufacturing growth.
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