Date published - 2023-11-14

(This is a very shortened version highlighting excerpts of our full report which is available for our paid subscribers). 

Last week, global markets exhibited a sideways trend but managed to close on a positive note following a robust trading session on Friday. This marked the second consecutive week of gains, with the Nasdaq soaring 2.4%, the S&P 500 advancing 1.3%, and the Dow Jones adding 0.7%.

Some notable stock moves included NVIDIA (+7.4%), Microsoft (+4.8%), WeWork, and Diageo (-11.7%). More detail on what drove the moves in our full report for paying subscribers.

Oil witnessed a 4% weekly decline, marking the third consecutive weekly decrease and gold recorded a weekly decline of 2.7% for its second straight weekly decrease.

Some SA company highlights last week:

Contrary to the global trend, South African stocks failed to capitalize on the late Friday rally in U.S. markets, closing the week lower with losses across major indices. Some company highlights:

AngloGold -12.5%

Richemont -3.5%

Foschini -3.6%

Truworths -4.6%

Multichoice -4.3%

MTN -4%

For more detail, consider a paid subscription.

Our trade ideas this week include a global giant and a strong local player making waves globally. 

Our feature infographic this week discusses Equity turnover. The infographic highlights what equity turnover is, what factors affect it and how it can be used as a barometer for market sentiment. The graphic also outlines recent trends on the JSE trading volume. 

Economic:

Moody's, the ratings agency, altered its outlook on US Debt to negative, while Standard & Poor's maintains a credit rating of AA+ with a stable outlook, Moody's rates it Aaa with a negative outlook, and Fitch gives it a rating of AA+ with a stable outlook.

We also had US inflation expectations, and consumer sentiment data. 

In Europe, we looked at retail sales, UK GDP. In China we looked at consumer prices and trade data which showed some interesting themes.

In South Africa, manufacturing production witnessed a sharp year-on-year decline of 4.3% in September 2023, the steepest drop since December 2022, attributed to severe power cuts. The mining sector also faced challenges, with a 1.9% year-on-year decline in production in September, marked by lower output in diamonds and other metallic minerals.

For the week ahead:

SA: Unemployment data and Retail sales

US: US inflation and retail sales, monthly budget and implications for ratings

China: Lending rates and total social financing (delayed from last week), retail sales, industrial production

Global: Eurozone GDP revisions, inflation and industrial production, UK inflation, retail sales and unemployment, Japan GDP and trade

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