📊 ROB’S DAILY UPDATE 📈
Volatility declined in pre-market U.S. trading after U.S. stocks suffered another sharp loss on Tuesday as worries about China and banks weighed on risk sentiment. Markets in Europe fluctuated, with the FTSE underperforming after today's inflation data showed the core consumer price index was unchanged, causing headaches for the Bank of England. In China, the sell-off deepened, but markets in South Korea and Japan also ended the Asian trading day with significant losses.
Recently, fears have been mounting that interest rates will remain at high levels for longer than expected. Bond yields have been gradually rising. Today we see a mixed picture before more U.S. economic data and Fed meeting minutes are released in the evening. However, UK bond yields continued to rise as expectations rose that the fight against inflation will continue after yesterday's record wage acceleration data and today's inflation report.
In the U.S., the strong economy after yesterday's positive retail sales data increases expectations that the Fed has no reason to cut interest rates anytime soon. The outperforming US economy and the robust US economy even in the face of high interest rates continue to support the USD.
Another risk factor is rising concerns about banks. Fitch warned of having to downgrade the credit ratings of dozens of banks.
From a technical perspective, the S&P 500 ended the day below its 50-day moving average after yesterday's sell-off in New York – which some analysts see as a signal of the start of a downtrend. We are purely fundamentally oriented – and from a fundamental perspective, there is not much to be optimistic about.
Chips continue to outperform, with investment banks remaining enthusiastic about Nvidia. Tesla, on the other hand, once again proves optimistic analysts wrong: The EV pioneer continues to fall after Tesla made another price cut in China – the second in just a few days.
👁 ROB'S MARKET OVERVIEW:
August 16, 2023
🇺🇸 US Markets ➡️/↘️ (mostly sideways movement ahead of Fed meeting minutes)
Cyclical Stocks ➡️/↘️
Tech/Growth Stocks ➡️/↘️
Financial Stocks ➡️/↘️
Defensive Stocks ➡️/↗️
Energy Stocks ➡️/↗️
Materials Stocks ➡️/↘️
USD, GBP ➡️/↗️
EUR, CAD ➡️
JPY, CHF, AUD ➡️/↘️
⚒ Commodity Markets ↕️
Oil prices ↕️/↗️ (Oil prices remain supported with tight supply – strong support at $80/barrel – WTI).
Natural Gas prices ↕️/↘️
Metal prices ↕️/↘️
Precious Metal prices ➡️/↘️ (remains under pressure due to elevated US Treasury yields, $1,900 remains key)
⚡️Cryptos ➡️/↘️ (risk-off, stronger USD and higher yields weigh on cryptos)
(*↗️ bullish, ↘️ bearish, ➡️ sideways / stable, ↕️ mixed / volatile)