Video: S&P500 uptrend intact, Uber sees first ever full year of profits ahead, China students are Aus' bound

Video: S&P500 uptrend intact, Uber sees first ever full year of profits ahead, China students are Aus' bound

Jessica Amir
Market Strategist

Summary:  Watch our video in under five minutes or read the text for what’s happening in markets, what to watch; plus potential trading and investing ideas to consider.

US equities (US500.I and USNAS100.I): Indices step lower, bumpy uptrend continues

US stocks retreated led by a selloff in AI tech companies, with Google falling the most in three months (7.4%) on concerns of several new entrants coming to market. While on the other side-  ‘surprise-surprise’ we had hawkish rhetoric from the Fed being breathed on markets. Four Fed officials stressed the need to keep raising interest rates, saying more had to be done to fight against inflation. Fed speakers Williams and Kashkari see the peak in rates rising above 5% this year, while Waller cautions that Fed may need rates ‘higher for longer’. As for positives - its seems the S&P500 and Nasdaq are still in their technical uptrends for now. As for positive company news, Uber shares gained 5% continuing its uptrend and rally from January, with Uber reporting stronger than expected quarterly results. Uber also expects its first ever year of profits, including for its ride and Uber eats businesses. This is extraordinary - for a company that’s been unprofitable since its inception. It comes as Uber received its highest ever amount of trips, 2 billion trips in a quarter, for the first time- that’s nearly 1 million trips per hour, while its also receiving more advertising dollars, and on track to achieve its $1 billion ad revenue in 2024.

Australian equites (ASXSP200.I): This quarter, focus will be on energy companies and companies benefiting from Chinese students returning

ASX200 futures suggest a 0.4% fall on Thursday. However, focus will be on energy companies again with oil markets moving up. In company news, Nine Entertainment (NEC): won the rights to the 2024-2032 Olympic Games so that will excite some. Fortescue Metals (FMG) is hoping its iron project in Gabon will one day rival the giant mines of Australia’s Pilbara, with the West African nation giving the go-ahead for digging to start this year. Also keep an eye on travel businesses and educational firms in the quarter ahead with at least 50,000 students from China expected to return to Australia before the start of semester  - with Beijing’s government ruling that degrees earned online will no longer be accredited.

Crude oil (CLH3 & LCOJ3) jumps again, supporting our long-term positive view in oil

Oil broke 1.7% higher to $78.48 with restricted supply and rising demand continue to play a part. On the demand side, TotalEnergies sees oil demand will rise to a record this year, in line with the EIA’s messaging. As for supply, consider we are just five day in to the EU banning imports of Russian oil products. Also impacting supply, BP declared force majeure (.i.e. it’s not able to fulfil contractual obligations) on Azeri oil exports, from Turkey's Mediterranean port of Ceyhan, with seaborne flows from the BTC pipeline still being halted.  For Saxo’s view, read out Quarterly Outlook.

 

- - - 

Turn to Saxo's
inspiration page for our global market insights and expectations.

To listen to our take on markets tune into our global 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 is not intended to and does not change or expand on this. 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/en-mena/legal/disclaimer/saxo-disclaimer)


Boulevard Plaza, Tower 1, 30th floor, office 3002
Downtown, P.O. Box 33641 Dubai, UAE

Contact Saxo

Select region

UAE
UAE

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

Saxo Bank A/S is licensed by the Danish Financial Supervisory Authority and operates in the UAE under a representative office license issued by the Central bank of the UAE.

The content and material made available on this website and the linked sites are provided by Saxo Bank A/S. It is the sole responsibility of the recipient to ascertain the terms of and comply with any local laws or regulation to which they are subject.

The UAE Representative Office of Saxo Bank A/S markets the Saxo Bank A/S trading platform and the products offered by Saxo Bank A/S.