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Tight credit conditions weigh on share buybacks, stocks in trouble? – Stock Market News

Posted on May 25, 2023 at 1:37 pm GMT

During the last few years, corporate share buybacks have been one of the main factors behind the prolonged rally observed in the equity space. However, as the period of loose credit conditions and extremely low interest rates has officially come to an end, it remains to be seen whether this theme belongs to the past. Up until now, share buybacks are holding close to their record 2022 levels, supporting equity markets, but can the resiliency extend in the upcoming months? Banking [..]

Forget default, is a debt ceiling deal the true risk for stocks? – Special Report

Posted on May 23, 2023 at 12:52 pm GMT

With US lawmakers unable to reach a deal on the debt ceiling, investors are laser-focused on the risk of a catastrophic default. However, the real problem for markets might be what happens after an agreement is found. That’s when the Treasury will scramble to raise its cash levels, which can drain liquidity out of the financial system and in the process, inflict damage on riskier assets such as stocks.  Political theater  It’s almost certain that US lawmakers will ultimately reach [..]

Daily Market Comment – Dollar flexes muscles as June hike bets rise

Posted on May 19, 2023 at 7:49 am GMT

Debt-ceiling headlines stay encouraging Initial jobless claims surprise to the downside Fed officials continue to appear in hawkish suits Dollar gains as June hike probability increases Wall Street celebrates the data and debt-ceiling optimism Debt-ceiling hopes, data and Fed rhetoric fuel the dollar The dollar continued to strengthen against almost all the other major currencies on Thursday, although it seems to be taking a breather today. The greenback climbed to seven-week highs helped by more headlines about the US debt-ceiling [..]

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Key earnings season themes to affect corporate outlook – Stock Market News

Posted on May 16, 2023 at 3:15 pm GMT

As the Q1 earnings season draws to an end, investors are closely scrutinising companies’ financial results to assess the health of the US economy and whether consumer spending is holding up. Although looming fears of an impending earnings crash did not materialise, the corporate world experienced a significant profit slump, which is set to persist in the upcoming quarters. So, which are the most important trends to keep a close eye on and how can they affect firms’ financials moving forward? [..]

Daily Market Comment – Focus shifts to US retail sales and debt ceiling talks

Posted on May 16, 2023 at 8:53 am GMT

Dollar inches lower, stocks cheer after soft US manufacturing data Next items on the agenda are US retail sales and debt ceiling talks  Disappointing Chinese data deals blow to recovery hopes  Stocks rise despite grim data Global markets entered the new trading week in a cheery mood. Wall Street cruised higher as investors continued to pile into tech and semiconductor shares while commodity prices staged a cautious recovery, shrugging off a gloomy manufacturing survey from the United States.  Manufacturing activity [..]

Daily Market Comment – Dollar gains despite increasing Fed cut bets

Posted on May 12, 2023 at 8:07 am GMT

Jobless claims jump to a 1-1/2-year high Dollar attracts haven flows, but too early for reversal BoE hikes, revises up inflation and GDP projections Dow and S&P 500 reflect worries, Nasdaq stays supported Dollar takes safe-haven suit out of the closet The US dollar outperformed every other major currency yesterday, despite US data adding to worries about the US economy and prompting investors to increase bets with regards to rate reductions by the Fed later this year. Initial jobless claims [..]

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What did we learn about stocks this earnings season? – Special Report

Posted on May 10, 2023 at 11:55 am GMT

The earnings season is almost over and stock markets are in a joyful mood. Even though corporate earnings are on track to decline for a second quarter, the drop was far less severe than what analysts expected, spreading cheer in the markets. In this piece, we dissect the outlook for earnings and examine whether valuations reflect economic reality.  Beating a low bar As the earnings season winds down, the results have been quite encouraging. In the first quarter of this [..]

Daily Market Comment – Recession fears mount but dollar fails to maintain haven status

Posted on April 27, 2023 at 8:06 am GMT

Ongoing uncertainties in the US hurt the dollar Atlanta Fed GDP estimate revised lower ahead of official data BoJ expected to stand pat, focus to fall on guidance Recession fears weigh on Dow and S&P 500, but Nasdaq gains Dollar pulls back against most of the other majors The US dollar traded lower against most of its major peers on Wednesday and continued drifting south today as well. It seems that with the ongoing uncertainties surrounding the world’s biggest economy, [..]

Daily Market Comment – Dollar gains amid renewed recession fears

Posted on April 26, 2023 at 8:23 am GMT

Dollar, yen gain as investors seek shelter Fed rate cut bets are back firmly on the table Euro uptrend may stay the course as ECB seen hiking more Wall Street slides amid renewed economic concerns Dollar wears its safe-haven suit again The dollar strengthened against the other major currencies on Tuesday, with the only exception being the yen, suggesting that the dollar’s gains may have been the result of safe-haven inflows. Today, the US currency is pulling back. Indeed, the [..]

Earnings season could expose cracks in the stock market – Stock Market News

Posted on April 6, 2023 at 8:31 am GMT

The first quarter earnings season will kick into high gear next week, with major US banks, as always, setting the tone. However, this time investors could pay even more attention to those results as the turmoil in the banking sector was responsible for a massive downshift in interest rate expectations. In general, earnings are set to contract for a second consecutive quarter, while valuations remain elevated and a recession is just around the corner. Equity markets defy earnings downgrades Major US [..]

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