Weekly Market Update

AI Written Markets Update

August 7, 2023

The RBA followed-up its rate hiking pause with the Statement of Monetary Policy on Friday, as investors remained on edge about the US fiscal outlook after Fitch cut the government's credit rating on Tuesday.

The global market experienced a mixed week, with various factors impacting investor sentiment. While strong earnings reports from the tech, travel, biotech, and consumer discretionary sectors provided some positive momentum, concerns over the US fiscal outlook and credit rating downgrades affected market performance. Let's take a closer look at the key highlights from the global market during the week of July 31st to August 4th, 2023.

Stock Market Recap

Q2's earnings season continued with major tech companies, travel companies, biotech firms, and consumer discretionary stocks reporting mostly positive results. However, despite the strong earnings reports, the market closed in the red for the week. The selling pressure started on Wednesday when a credit rating agency downgraded the US debt rating due to concerns over domestic political uncertainty.

Here's a summary of the market performance for the week:

• S&P 500: The benchmark index ended the week down 1%, snapping a three-week winning streak.

• Oil (WTI crude): Crude oil prices rose by 3.1% during the week.

• Gold (New York): Gold prices declined by 0.7%.

• Bitcoin: The popular cryptocurrency experienced a slight decline of 0.8%.

Earnings Season Update

The eagerly awaited earnings reports from tech giants Apple and Amazon showed mixed results. Apple's iPhone sales continued to slow, while Amazon showcased its strength in the market. Other notable early reporters in the local market, such as Resmed and Pinnacle Investment Management, disappointed investors with lower-than-expected margins and flat earnings. Credit Corp also experienced a decline in earnings.

Looking ahead, investors are eagerly awaiting the earnings report from Commonwealth Bank of Australia (CBA), which is expected to have a significant impact on the market.

Trading Updates and Market Developments

Several trading updates and market developments took place during the week. Here are some notable highlights:

• Helloworld: The travel company's shares soared after upgrading its profit guidance.

• Downer EDI: The engineering company faced a significant decline in share prices after announcing a hefty impairment charge.

• Vocus: The company put forward a $6.3 billion bid for TPG's enterprise, government, and wholesale assets, which may attract attention from the ACCC (Australian Competition and Consumer Commission).

• ANZ: The ACCC rejected ANZ's bid for Suncorp's banking arm, putting a halt to the potential acquisition.

Lithium Industry Updates

The lithium industry also saw noteworthy developments during the week. US lithium giant Albemarle announced a $83 million investment in Patriot Battery Metals , signalling continued growth in the sector. The news surrounding the lithium industry was particularly significant considering the ongoing demand for lithium in various industries, including electric vehicles and renewable energy.

Economic Data and China's Influence

China's economic data continued to disappoint, sparking discussions about potential stimulus measures. The market closely monitored China's economic indicators, which had a significant impact on investor sentiment. The possibility of increased stimulus measures aimed at boosting the economy remained a topic of interest.

Conclusion

The global market experienced a mixed week, with strong earnings reports from various sectors counterbalanced by concerns over the US fiscal outlook and credit rating downgrades. Investors closely monitored economic data and trading updates, which influenced market sentiment. The performance of key tech companies, trading updates from various industries, and developments in the lithium industry were particularly noteworthy. Looking ahead, market participants will continue to analyse earnings reports and economic indicators for further insights into market trends and potential investment opportunities.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. Investing in the stock market involves risks, and individuals should conduct thorough research and seek professional advice before making any investment decisions. The writer and the platform do not assume any responsibility or liability for any actions taken based on the information provided above

Global Economic Sentiment Shifts as US Data Strengthens whilst Eurozone Data Weakens

August 2, 2024
Global economic sentiment shifted in the week as US data strengthened, and Eurozone data weakened. Weaker global economic data raised concerns about central bank hawkishness, leading to a stronger US dollar and weaker currencies. Crude oil prices remained resilient amid supply concerns, while tech stocks led US markets lower as Apple took a hit.
Read More

US Markets Closed Flat, China Stabilizes, and the End of Monetary Tightening in Europe?

August 2, 2024
Despite higher-than-expected US CPI data, bond and equity markets remained calm initially. The jump in inflation was attributed to a temporary rise in energy prices and air travel. However, volatility set in due to the IPO of British chip maker ARM, pushing markets up by around 2%. Fears of a further rate hike set in causing US markets to close flat. Conversely, European, Australian, and UK markets ended the week positively, driven by the performance companies reliant on Chinese exports.
Read More

Markets Slammed By Hawkish Rhetoric Despite Pause From The Fed

August 2, 2024
Equity markets around the world fell more or less in unison last week by about 3-4%, before bouncing slightly on Friday. The UK was really the only market to buck the trend, as the Bank of England unexpectedly kept rates on hold after inflation fell by more than forecast.
Read More

Sticky Inflation Concerns Put Markets on the Back Foot

August 2, 2024
Last week markets were down again, reflecting the trends that took root in September - long-term yields pushing higher with markets on the back foot.
Read More

Riding the Market Rollercoaster

August 2, 2024
If we had written this commentary early in the week as intended, we would have said that markets were still on the back foot, as they were down another few percent. However, having got to the end of this week things have improved quite a bit and most markets are now actually up a few percent, with China leading the way.
Read More

Rising Rates Rattle Stocks as Geopolitical Risks Emerge

August 2, 2024
This week rates have headed resolutely upwards, and stocks have not liked it much with most markets heading steadily downwards throughout the week.
Read More

Markets navigate cross currents of stronger economies and a higher rate outlook

August 2, 2024
Read More

Financial markets whipsaw as stubborn inflation forces central banks to recalibrate rate cut plans.

August 2, 2024
Read More

Market indigestion: Strong US Economic, Data Rising Inflation and market volatility

August 2, 2024
Read More

A tug-of-war between solid corporate profits and gathering macroeconomic headwinds

August 2, 2024
Read More

April 2024 in review: Volatility and Mixed Economic Data

August 2, 2024
Read More

Fed Holds Steady as Global Markets Respond to Mixed Economic Cues

August 2, 2024
Read More

Andrew Hunt's visit to New York and some key implications for global markets

August 2, 2024
Last week Andrew visited the InvestSense offices and shared his observations and findings from his visit to the United States, specifically New York.
Read More

Helping your clients assess the climate impact of their Portfolio

August 2, 2024
Nathan Fradley explains how the ethosesg technology can help you assess and design an ethical portfolio that aligns to an investor’s personal values.
Read More

Carbon credits and investing – is it the outcome we expect?

August 2, 2024
ETFs that invest in carbon credits are now available. Why should we assume that their price will go up over time? And does buying a carbon credit ETF actually contribute positively to emissions reduction? Will it actually generate the outcome investors are expecting? This article explores the issues around investing in carbon credits.
Read More

Better World makes a difference with investment in renewables

August 2, 2024
There are many direct assets and funds that contribute positively to climate action within the InvestSense Better World Portfolios. Meridian Energy is one of the stand-out direct assets in the portfolio with a climate energy focus.
Read More

Bad news equals good news

August 2, 2024
In recent years professional investors have got increasingly used to the fact that good news is bad news for markets because higher interest rates are likely to be necessary, and of course vice-versa. However, last week the effect was stronger than ever and stocks rallied mid-week amidst reports of widespread lay-offs and expectations of a weak US jobs report.
Read More

‘Buy the dip’ opportunism start surfacing

August 2, 2024
The US market finally market caught a bid last week. Early in the week the market was down few percent after an earnings miss by ad dependent social media platform Snap (of Snapchat fame) combined with weak guidance raised more doubts about the economy and economic resilience of tech companies.
Read More

US momentarily dips into official bear market territory

August 2, 2024
The seventh negative week in a row for the US sent it briefly into official bear market territory before it recovered slightly late on Friday. The world’s largest stocks (Apple, Microsoft Amazon and Google) are all down 25%.
Read More

How Mark Lewin saved 13 hours a week with Managed Accounts

August 2, 2024
Mark Lewin was a financial planner, but is now the Director of Back Office Heros. In his planning business he gained significant efficiencies by recommending and implementing managed accounts for his clients. He tells us how...
Read More
Icon of a letter

InvestSense insights, delivered straight to your inbox.

Icon of a letter

Get the latest industry news

Icon of a letter

Get the latest industry news

Icon of a letter

Get the latest industry news