Key Stories from the past week: Lingering Inflation Hits Market Sentiment Key Stories from the past week: Lingering Inflation Hits Market Sentiment Key Stories from the past week: Lingering Inflation Hits Market Sentiment

Key Stories from the past week: Lingering Inflation Hits Market Sentiment

Macro
Saxo

Market risk sentiment was lacking as sticky inflation, rising Treasury yields, and a few high profile revenue misses from Salesforce and Dell knocked investor confidence. The VIX volatility index increased +14% indicating heightened price fluctuations as we headed into the weekend. Saxo clients continue to add to market outperformers, Nvidia, Advance Micro Devices and Novo Nordisk while at the same time taking a more neutral stance on the immediate direction of major indices.

What's driving AstraZeneca to new all time highs 
After a challenging period in the early 2010s, AstraZeneca underwent significant restructuring to increase R&D investment, focusing on rebuilding its drug pipeline, particularly in oncology which now positions the company for future growth. The company's commitment to innovation and a robust oncology pipeline aims to redefine cancer care and double revenue to $80 billion by 2030.
AstraZeneca: From patent cliff to oncology leader

Japanese equities have a lot of factors going for them right now
Japanese equities finished the week on a high as CPI inflation picked up to +1.9%. Japan's Topix Banks index is closing the month with 7% gains, as BOJ's exit from negative rates boosts net interest income. Large banks like MUFG and Sumitomo Mitsui forecasted record profits on higher rates, and have announced plans to increase dividends and share buybacks.
Understanding the Surge in Japanese Equities

Stubborn inflation prints sets up for a key ECB policy meeting next week
Year-on-Year Euro-area inflation accelerated to 2.6% in May, potentially blunting the scope for interest rate cuts. Traders maintained wagers for a cut at the European Central Bank meeting next week, but reduced bets on easing after that. A cut from the ECB is increasingly looking like an outlier from other major central banks who are waiting for more evidence inflation is back to target.
ECB policy preview

Things to look out for in the coming week include The ECB policy meeting (Thursday) where the target rate is expected to be cut 25bps to 3.75%. Data releases on US jobs culminating in Non-farm payrolls (Friday). We are expecting earnings from cybersecurity firm Crowdstrike (Tuesday) and clothing retails Lululemon (Wednesday). There are also numbers from popular trading stocks, Gamestop (Wednesday) and Nio Inc. (Thursday).

 


Disclaimer

The Saxo 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 Inspiration Disclaimer and (v) Notices applying to Trade Inspiration, 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 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 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 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 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 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.

Trading in financial instruments carries risk, and may not be suitable for you. Past performance is not indicative of future performance. Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/en-sg/legal/disclaimer/saxo-disclaimer)

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Markets or its affiliates.

Saxo Markets
88 Market Street
CapitaSpring #31-01
Singapore 048948

Contact Saxo

Select region

Singapore
Singapore

Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-sg/about-us/awards.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website are not intended for residents of the United States, Malaysia and Japan. Please click here to view our full disclaimer.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.