Key Stories from the past week: EU easing policy begins while US gets repriced Key Stories from the past week: EU easing policy begins while US gets repriced Key Stories from the past week: EU easing policy begins while US gets repriced

Key Stories from the past week: EU easing policy begins while US gets repriced

Saxo

The week wasn’t short of action with macro events boosting activity in products with exposure to rate changes. The ongoing AI frenzy saw clients add to positions in Nvidia, Salesforce, Microsoft, AMD and ASML. While US indices saw outflows as S&P500 and Nasdaq100 reach new highs.

Clients continue to add Nvidia positions
The higher Nividia shares climb the more investor attention it attracts. This is true at Saxo as this week NVDA:xnas saw the largest absolute position additions across our client base. The company’s market cap breached the $3 trillion mark and is now second only to Microsoft. The 10-for-1 stock split next week may improve optics for smaller investors wanting to get a slice of the action.
AI bonanza takes equities to new all-time highs

Reluctant cut from the ECB
The ECB’s hawkish cut and mixed US labour data has boosted client interest in yields, bonds and credit spread products as investors continue to reprice rate cut expectations from major Central Banks. We have seen increased client activity in various futures products that give investors exposure to global interest rate moves. Activity will no doubt continue next week with US inflation data and FOMC meeting.
Is the ECB playing with fire?

Clients feel new highs for US Indices are a bit frothy
Both the NASDAQ and the S&P500 reached new highs this week. And despite the technical update indicating potential for further gains, we see clients increasing short exposure for US indices. Clients are either taking profits at elevated prices or are dubious about the punchy valuations and think the uptrend could be stretched. Shorts could be rewarded today as Non-Farm Payrolls comes in much hotter than expected.
Technical Update - S&P500 and Nasdaq100

Things to look out for in the coming week include US CPI and a FOMC policy meeting, both on Wednesday. Following the surprise NFP numbers, the market is no longer pricing in a full rate cut before December. CPI will be the main event for markets to get a read on potential policy. Meanwhile, key earnings to watch are Autodesk (Mon), Oracle (Tue), Broadcom (Wed), and Adobe (Thu).

 


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.