We see Wall Street with some losses in pre-market US trading as the market fails to find new catalysts to drive the recent rally further. Overall, trading volume remains very light. Losses in pre-market US trading are more prevalent in the growth sector, where Shopify (-19%) and Uber (-9%) have also fallen sharply after disappointing earnings reports. Smaller Uber rival Lyft beat estimates and Reddit also rose following a positive forecast.
In Europe, markets were helped by positive results from brewer Anheuser-Busch InBev and Siemens Energy, but headwinds from New York will limit (further) gains.
The recent slide in yields also came to a halt, with US Treasury yields rising slightly and the USD pointing to a possible third day of modest gains to recover further from last week's one-month low. The USD also received support from hawkish comments from Federal Reserve Bank of Minneapolis President Neel Kashkari, who said it was likely that the central bank would keep interest rates on hold “for an extended period of time” and possibly for all of 2024. Kashkari's comments have also weighed on equity markets / risk sentiment.
We see more signs that the recent positive economic data is deteriorating again – both in the US, which appears to be slowing after strong growth in 2023, and deteriorating data from Europe again. The general mood remains positive as long as interest rate cuts are on the table. Today, the Swedish Riksbank initiated its rate cut cycle and eased monetary policy for the first time in eight years. The SNB had already cut interest rates in March, overtaking its competitors.
Much focus will continue to be on the Fed's speeches (today by Fed Governor Lisa Cook).
The stronger USD weighed on commodity prices, with WTI hitting $77/barrel for the first time in almost two months. Gold fell near $2,300 but recovered as markets became more cautious again.
We expect markets to remain mostly sideways – but after Monday's gains and further (smaller) gains on Tuesday, we will see more profit taking today as investors currently have little reason to become more optimistic, which would be needed to push the recent rally further.
👁 ROB'S MARKET OVERVIEW:
May 08, 2024
🌐/🇺🇸 Global Markets ↘️/➡️
Cyclical / Luxury Stocks ↘️/➡️
Tech/Growth Stocks ↘️/➡️
Financial Stocks ↘️/➡️
Defensive Stocks ➡️
Energy Stocks ↘️/➡️
Materials Stocks ↘️
💱 Forex
USD, EUR ↗️/➡️
CAD, CHF ➡️
GBP, AUD ↘️/➡️
JPY ↘️
⚒ Commodity Markets ↘️/↕️
Oil prices ↘️/➡️
Natural Gas prices ↗️/↕️
Metal prices ↘️/➡️
Gold ↘️/↕️/↗️ (headwinds from temporary further gains in USD; benefiting from rising uncertainty)
⚡️Cryptos ↘️ (sliding lower again after recent gains due to worsened risk sentiment / stronger USD)
(*↗️ bullish, ↘️ bearish, ➡️ sideways / stable, ↕️ mixed / volatile)
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