shares

Investors were not impressed by the iPhone 15 and Apple Watch Series 9 reveal, causing Apple's shares to drop 1.8% and affecting the Nasdaq 100, which fell 1.1%. Adobe's stock also declined by 4% ahead of its upcoming earnings report. Meanwhile, OPEC's forecast of a tight oil market led to crude oil prices surging to 10-month highs. OPEC anticipates a significant 3.3mb/d supply deficit in Q4, one of the largest in over a decade. CAD outperformed in the G-10, while EUR made gains following an ECB leak about potential inflation forecast increases. Today's focus is on the US CPI report.

 

 

US Equities: Investors were not impressed by the iPhone 15 and Apple Watch Series 9 unveiled on Tuesday, seeing the shares of Apple drop by 1.8%. The Apple decline weighed on the Nasdaq 100 which slid 1.1%. Adding to the selling was a 4% decline in Adobe ahead of reporting on Thursday. Another focus in the tech space was Oracle, which plummeted 13.5% on weak cloud sales. The S&P500 shed 0.6%.

Trade Zone Week Ahead: Indices, Forex, and Commodities Real-Time Insight, with Andrew Lockwood

Trade Zone Week Ahead: Indices, Forex, and Commodities Real-Time Insight, with Andrew Lockwood

8 eightcap 8 eightcap 06.05.2022 12:43
Join Andrew Lockwood from ForexSignals.com, for Monday’s Trading Week Ahead Live, as he takes you through his markets to monitor for the upcoming week. Watch as he analyses the Indices, Forex, and Commodities markets, and shares his potential trade opportunities for the week. JOIN THIS WEDNESDAY’S LIVE MARKET UPDATE! Do you want to continue monitoring the markets reviewed in Monday’s Trading Week Ahead Live? Then Join us this coming Wednesday, at 7 PM AEST (10 AM BST), as Andrew continues his analysis from Monday. Watch him as he looks back at moves and developments made since Monday, and shares where he foresees the market heading as we approach the weekend. Register Now This is the perfect opportunity to help you summaries the levels you’re watching and understand the movements being made. As usual, at the end of the session, there will be a live Q&A, for you and the rest of the Trade Zone community to ask Andrew Lockwood all your market and trade-related questions. So if you are not sure about the reasons behind a market movement, or you would like to know more about any of the pairs or commodities covered this week? This is the place to come to get the answers you need. So join us and enjoy… And as always remember to trade safely! The post Trade Zone Week Ahead: Indices, Forex, and Commodities Real-Time Insight, with Andrew Lockwood appeared first on Eightcap.
Trade Zone Week Ahead: Begin Your Week, with Real-time Insight from Andrew Lockwood

Trade Zone Week Ahead: Begin Your Week, with Real-time Insight from Andrew Lockwood

8 eightcap 8 eightcap 12.05.2022 14:43
Join Andrew Lockwood from ForexSignals.com, for his penultimate week on the Eightcap Trade Zone. Start the week with another live Monday morning Trading Week Ahead, as he outlines the markets to monitor from, Indices, Forex, and Commodities, and shares his potential trade ideas for the week for the coming week. JOIN THIS WEDNESDAY’S LIVE MARKET UPDATE | 18th May 2022! Would you like an update on how the markets have been performing this week? Then Join us this coming Wednesday, at 7PM AEST (10AM BST), as Andrew provides his mid-week Live Market Update. Watch him, as he looks back at his analysis from Monday, and updates you with the moves and developments that have been made. Then shares where he foresees the market heading as we approach the weekend. Register Now Do you need some help summarising the market, or want to trade along side a seasoned trader? If so, this is the perfect opportunity to get the help and support you need. As usual there will be a live Q&A at the end of the session, for you and the rest of the Trade Zone community to ask Andrew Lockwood any trade-related questions you may have. So if you are not sure about the reasons behind any of the movements in the market, or you would like to know more about a particular asset or pair? Then this is the place to come to get the answers you need. So join us on the Trade Zone this week, and as always, please remember to trade safely! The post Trade Zone Week Ahead: Begin Your Week, with Real-time Insight from Andrew Lockwood appeared first on Eightcap.
Trade Zone Week Ahead: Begin Your Week with Real-time Insight from Andrew Lockwood

Trade Zone Week Ahead: Begin Your Week with Real-time Insight from Andrew Lockwood

8 eightcap 8 eightcap 15.05.2022 14:43
Join Andrew Lockwood from ForexSignals.com, for his penultimate week on the Eightcap Trade Zone. Start the week with another live Monday morning Trading Week Ahead, as he outlines the markets to monitor from, Indices, Forex, and Commodities, and shares his potential trade ideas for the week for the coming week. JOIN THIS WEDNESDAY’S LIVE MARKET UPDATE | 18th May 2022! Would you like an update on how the markets have been performing this week? Then Join us this coming Wednesday, at 7PM AEST (10AM BST), as Andrew provides his mid-week Live Market Update. Watch him, as he looks back at his analysis from Monday, and updates you with the moves and developments that have been made. Then shares where he foresees the market heading as we approach the weekend. Register Now Do you need some help summarising the market, or want to trade along side a seasoned trader? If so, this is the perfect opportunity to get the help and support you need. As usual there will be a live Q&A at the end of the session, for you and the rest of the Trade Zone community to ask Andrew Lockwood any trade-related questions you may have. So if you are not sure about the reasons behind any of the movements in the market, or you would like to know more about a particular asset or pair? Then this is the place to come to get the answers you need. So join us on the Trade Zone this week, and as always, please remember to trade safely! The post Trade Zone Week Ahead: Begin Your Week with Real-time Insight from Andrew Lockwood appeared first on Eightcap.
Trade Zone Week Ahead: Morning Market Insight, with Stuart McPhee

Trade Zone Week Ahead: Morning Market Insight, with Stuart McPhee

8 eightcap 8 eightcap 24.05.2022 22:00
Welcome trader, property investor, and bestselling author Stuart McPhee as he delivers his first Trading Week Ahead Live of June. Join him this coming Monday, as he starts the week by summarising the state of the markets in Forex, Indices, and Commodities. Then shares his perspective on potential trade ideas and opportunities in play for the coming week.  JOIN THIS WEDNESDAY’S LIVE MARKET UPDATE | 1st June 2022! Would like you to receive more support and guidance around your trading activity? Then Join Stuart and the rest of the Trade Zone community this coming Wednesday at 7PM AEST (10AM BST). Watch as he gives you his first mid-week Live Market Update of the Month. Revisiting the weeks earlier trade ideas from Monday’s Trading week Ahead, Stuart updates his insight about the moves and progression that have been made and shares his beliefs in the market as we approach the weekend. Register Now At the end of the session, there will be a live Q&A for you to ask all your market, strategy, and trade-related questions and get the answers needed to unlock the secrets to trading CFDs. The Trade Zone is the perfect place to get the help and support you need to improve your skills and understanding of the financial markets. So join the Eightcap Trade Zone this week as we explore the markets together, and please remember to trade safely! The post Trade Zone Week Ahead: Morning Market Insight, with Stuart McPhee appeared first on Eightcap.
Trade Zone Week Ahead: Morning Market Insight, with Stuart McPhee - 02.06.2022

Trade Zone Week Ahead: Morning Market Insight, with Stuart McPhee - 02.06.2022

8 eightcap 8 eightcap 02.06.2022 01:00
Join trader, property investor, and bestselling author Stuart McPhee as he delivers his first Trading Week Ahead Live of June. Watch him as he starts off the week by summarising the state of the markets in Forex, Indices, and Commodities. Then prepare yourself as he shares potential trade ideas and opportunities in play for the coming week.  JOIN THIS WEDNESDAY’S LIVE MARKET UPDATE | 8th June 2022! Would you like help to understand the reasons behind the moves made in this week’s markets? Join Stuart and the rest of the Trade Zone community on Wednesday 8th June, at 7PM AEST (10AM BST). Watch as he gives you his first mid-week Live Market Update of the Month. Revisiting the week’s earlier trade ideas from Monday’s Trading week Ahead, Stuart updates his insight, breaking down the developments and moves made, and predicts what may happen as the weekend approaches. Register Now At the end of the session, there will be an opportunity to direct all your market, strategy, and trade-related questions to the expert in a live Q&A. Get the answers needed to trade CFDs. The Trade Zone is the perfect place to get the help and support you need to improve your skills and understanding of the financial markets. So come join Eightcap and Stuart McPhee this week on the Trade Zone as we explore the markets together – Please remember to trade safely! The post Trade Zone Week Ahead: Morning Market Insight, with Stuart McPhee appeared first on Eightcap.
The Swing Overview – Week 20 2022

The Swing Overview – Week 20 2022

Purple Trading Purple Trading 02.06.2022 16:36
The Swing Overview – Week 20 The markets remain volatile and fragile, as shown by the VIX fear index, which has again surpassed the level 30 points. However, equity indices are at interesting supports and there could be some short-term recovery. The euro has bounced off its support in anticipation of tighter monetary policy and the gold is holding its price tag above $1,800 per troy ounce. Is the gold back in investors' favor again? Macroeconomic data The week started with a set of worse data from the Chinese economy, which showed that industrial production contracted by 2.9% year-on-year basis and the retail sales fell by 11.1%. The data shows the latest measures for the country's current COVID-19 outbreak are taking a toll on the economy. To support the slowing economy, China cut its benchmark interest rate by 0.15% on Friday morning, more than analysts expected. While this will not be enough to stave off current downside risks, markets may respond to expectation of more easing in the future. On a positive note, data from the US showed retail sales rose by 0.9% in April and industrial production rose by 1.1% in April. Inflation data in Europe was important. It showed that inflation in the euro area slowed down a little, reaching 7.4% in April compared to 7.5% in March. In Canada, on the other hand, the inflation continued to rise, reaching 6.8% (6.7% in March) and in the UK inflation was 9% in April (7% in the previous month). Several factors are contributing to the higher inflation figures: the ongoing war in Ukraine, problems in logistics chains and the effects of the lockdown in China. Concerns about the impact of higher inflation are showing up in the bond market. The benchmark 10-year US Treasury yield has come down from the 3.2% it reached on 9 May and is currently at 2.8%. This means that demand for bonds is rising and they are once again becoming an asset for times of uncertainty.  Figure 1: US 10-year bond yields and USD index on a daily chart   Equity indices on supports Global equities fell significantly in the past week, reaching significant price supports. Thus, there could be some form of short-term bounce. Although a cautious rally began on Thursday, which was then boosted by China's decision to cut interest rates in the early hours of Friday, there is still plenty of fear among investors and according to Louis Dudley of Federated Hermes, cash holdings have reached its highest level since September 2001, suggesting strong bearish sentiment. Supply chain problems have been highlighted by companies such as Cisco Systems, which has warned of persistent parts shortages. That knocked its shares down by 13.7%. The drop made it the latest big-stock company to post its biggest decline in more than a decade last week. The main risks that continue to cause volatility and great uncertainty are thus leading investors to buy "safe" assets such as the US bonds and the Swiss franc. Figure 2: The SP 500 on H4 and D1 chart From a technical analysis perspective, the US SP 500 index continues to move in a downtrend as the market has formed a lower low while being below both the SMA 100 and EMA 50 moving averages on the H4 and daily charts. The nearest resistance is 4,080 - 4,100. The next resistance is at 4,140 and especially 4,293 - 4,300. Support is at 3,860 - 3,900 level. German DAX index The index continues to move in a downtrend along with the major world indices. The price has reached the support which is at 13,680 – 13,700 and the moving average EMA 50 on the H4 chart is above the SMA 100. This could indicate a short-term signal for some upward correction. However, the main trend according to the daily chart is still downwards. The nearest resistance is at 14,260 - 14,330 level. Figure 3: German DAX index on H4 and daily chart The euro has bounced off its support The EUR/USD currency pair benefited last week from the US dollar moving away from its 20-year highs while on the euro, investors are expecting a tightening economy and a rise in interest rates, which the ECB has not risen yet as one of the few banks. Figure 4: The EURUSD on H4 and daily chart   Significant support is at the price around 1.0350 - 1.040. Current resistance is at 1.650 - 1.700.   The Gold in investors' attention again The gold has underperformed over the past month, falling by 10% since April when the price reached USD 2,000 per ounce. But there is now strong risk aversion in the markets, as indicated by the stock markets, which have fallen. The gold, on the other hand, has started to rise. Inflation fears are a possible reason, and investors have begun to accumulate the gold for protection against rising prices. The second reason is that the gold is inversely correlated with the US dollar. The dollar has come down from its 20-year highs, which has allowed the gold to bounce off its support.  Figure 5: The gold on H4 and daily chart The first resistance is at $1,860 per ounce. The support is at $1,830 - $1,840 per ounce. The next support is then at $1,805 - $1,807 and especially at $1,800 per ounce.
Trade Zone Week Ahead: Morning Market Insight, with Stuart McPhee - 06.06.2022

Trade Zone Week Ahead: Morning Market Insight, with Stuart McPhee - 06.06.2022

8 eightcap 8 eightcap 05.06.2022 20:00
Join trader, property investor, and bestselling author Stuart McPhee as he delivers his first Trading Week Ahead Live of June. Watch him as he starts off the week by summarising the state of the markets in Forex, Indices, and Commodities. Then prepare yourself as he shares potential trade ideas and opportunities in play for the coming week. JOIN THIS WEDNESDAY’S LIVE MARKET UPDATE | 8th June 2022! Would you like help to understand the reasons behind the moves made in this week’s markets? Join Stuart and the rest of the Trade Zone community on Wednesday 8th June, at 7PM AEST (10AM BST). Watch as he gives you his first mid-week Live Market Update of the Month. Revisiting the week’s earlier trade ideas from Monday’s Trading week Ahead, Stuart updates his insight, breaking down the developments and moves made, and predicts what may happen as the weekend approaches. Register Now At the end of the session, there will be an opportunity to direct all your market, strategy, and trade-related questions to the expert in a live Q&A. Get the answers needed to trade CFDs. The Trade Zone is the perfect place to get the help and support you need to improve your skills and understanding of the financial markets. So come join Eightcap and Stuart McPhee this week on the Trade Zone as we explore the markets together – Please remember to trade safely! The post Trade Zone Week Ahead: Morning Market Insight, with Stuart McPhee appeared first on Eightcap.
Trade Zone Week Ahead: Morning Market Insight, with Stuart McPhee - 09.06.2022

Trade Zone Week Ahead: Morning Market Insight, with Stuart McPhee - 09.06.2022

8 eightcap 8 eightcap 09.06.2022 01:30
Join Stuart McPhee, trader, property investor, and bestselling author, as he gives you his Trading Week Ahead Live for the week. Watch him as he starts off the week by summarising the state of the markets in Forex, Indices, and Commodities. Then prepare yourself as he shares potential trade ideas and opportunities in play for the coming week.  JOIN THIS WEDNESDAY’S LIVE MARKET UPDATE | 15th June 2022! Are you tired of analysing the market alone? Would you like to know how the market is taking shape this week? Register for Stuart’s mid-week Live Market Update. Join him on Wednesday 15th June, at 7PM AEST (10AM BST) as he looks back at the earlier market activity and opportunities since his Trading week Ahead. Stuart will then break down the developments and moves made and provide further insight on what may happen as the weekend approaches. Register Now At the end of the session, you will have the opportunity to direct all your market, strategy, and trade-related questions to the expert in a live Q&A. Learn what you need to trade CFDs safely. The Trade Zone is the perfect place to get the help and support you need to improve your skills and understanding of the financial markets. So come join Eightcap and Stuart McPhee this week on the Trade Zone as we explore the markets together – Please remember to trade safely! The post Trade Zone Week Ahead: Morning Market Insight, with Stuart McPhee appeared first on Eightcap.
Trading Week Ahead Live with Stuart McPhee

Trading Week Ahead Live with Stuart McPhee

8 eightcap 8 eightcap 12.06.2022 00:30
Join Stuart McPhee, trader, property investor, and bestselling author, as he gives you his Trading Week Ahead Live for the week. Watch him as he starts off the week by summarising the state of the markets in Forex, Indices, and Commodities. Then prepare yourself as he shares potential trade ideas and opportunities in play for the coming week.  JOIN THIS WEDNESDAY’S LIVE MARKET UPDATE | 15th June 2022! Are you tired of analysing the market alone? Would you like to know how the market is taking shape this week? Register for Stuart’s mid-week Live Market Update. Join him on Wednesday 15th June, at 7PM AEST (10AM BST) as he looks back at the earlier market activity and opportunities since his Trading week Ahead. Stuart will then break down the developments and moves made and provide further insight on what may happen as the weekend approaches. Register Now At the end of the session, you will have the opportunity to direct all your market, strategy, and trade-related questions to the expert in a live Q&A. Learn what you need to trade CFDs safely. The Trade Zone is the perfect place to get the help and support you need to improve your skills and understanding of the financial markets. So come join Eightcap and Stuart McPhee this week on the Trade Zone as we explore the markets together – Please remember to trade safely! The post Trading Week Ahead Live with Stuart McPhee appeared first on Eightcap.
Stock Market: Uber, Palantir And Moderna In Top 3...

Stock Market: Uber, Palantir And Moderna In Top 3...

Purple Trading Purple Trading 15.07.2022 13:08
TOP 3 most traded CFD stocks of this week Information is one of the most valuable commodities. No one can tell you with absolute certainty where any stock is headed. But sometimes you just need to know where, at what point, and why are investors taking the most positions to try to take advantage of the volume and volatility yourselves. We bring you a summary of this week’s top 3 most traded CFD stocks at Purple Trading. What is behind their popularity and what is the outlook for the future? You can find answers to these questions in today’s article. Uber Shares of the notoricaly loss-making taxi service are under a lot of pressure this year. They have lost more than half their value since January. Uber is now selling more than 50% below the price it was when it entered the stock markets in 2019. Comparing it to its all-time high of $63.18 in early January 2021 is even more dismal. The big drop in Uber stock isn't too surprising in the context of the company's financial results from the first quarter of the year. While Uber's revenue grew 136% year-over-year to $6.9 billion, its net loss came in at $5.9 billion due to failed investments in Grab, Aurora, and DiDi. Chart 1: Uber shares on the MT4 platform on the M15 timeframe along with the 100 and 200 day moving averages Uber has become the focus of investor attention in recent days due to leaked information about lobbying high-profile politicians such as French President Emmanuel Macron. The revelations of the scandal have made Uber shares very volatile, which traders have taken advantage of.   The outlook for the coming months is not very positive for the company - high fuel prices are making Uber's services more expensive and a possible recession could significantly affect the company's revenues. Uber's business can be described as rather cyclical and in times of recession the company could suffer as a result. Nor should we underestimate the impact of the growing coronavirus, which is once again beginning to plague the entire world.   However, Uber’s relatively low valuation (it is now trading near an all-time low) and its positive cash flow outlook for 2022 is what’s playing into Uber’s hands. The company will publish its 2Q earnings in early August, and no matter the outcome, Uber shares are likely to remain popular among traders.   Palantir Uber has become the focus of investor attention in recent days due to leaked information about lobbying high-profile politicians such as French President Emmanuel Macron. The revelations of the scandal have made Uber shares very volatile, which traders have taken advantage of.   The outlook for the coming months is not very positive for the company - high fuel prices are making Uber's services more expensive and a possible recession could significantly affect the company's revenues. Uber's business can be described as rather cyclical and in times of recession the company could suffer as a result. Nor should we underestimate the impact of the growing coronavirus, which is once again beginning to plague the entire world.   However, Uber’s relatively low valuation (it is now trading near an all-time low) and its positive cash flow outlook for 2022 is what’s playing into Uber’s hands. The company will publish its 2Q earnings in early August, and no matter the outcome, Uber shares are likely to remain popular among traders. Chart 2: Palantir shares on the MT4 platform on the M15 timeframe along with the 100 and 200 day moving averages Investors still have no idea where to classify Palantir - is it an army contractor or an IT company? The stock's performance so far this year would point more towards an IT company. Military contractors like Lockheed Martin and Raytheon Technologies have had a great year so far, outperforming the S&P 500 index significantly. Palantir's CEO visited Ukraine in June in an effort to expand the company's operations. This obviously pleased investors, but potential expansion is difficult to quantify.   Moreover, the company's capitalization is still more than 10 times its annual revenue, a giant number compared to its competitors. Competitor Booz Allen Hamilton is currently selling for about 1.5 times annual sales, and the company's stock is near this year’s low. The company has a long track record of growing sales and, unlike Palantir, is profitable. Palantir's 2Q earnings are due in the first half of August. The company is expecting 25% year-on-year revenue growth. However, in the same period a year ago, the company grew revenue by 49%. Thus, any surprise in the earnings could cause high volatility. Palantir is definitely a stock to watch.    Moderna Seeing the famous vaccine producer among this week’s most traded companies in our CFD stock offering is not much of a surprise. Yet, back in mid-June, things were not looking good for Moderna shares - as this company was about 50% below the price we could see at the beginning of the year. However, the last month has been great for Moderna and its shares have soared almost by 50%. The reasons for this steep rise are clear - the coronavirus is once again on the rise globally. Since the beginning of June, the number of daily covid cases have practically doubled globally. The World Health Organisation has warned that the pandemic is far from over. This is just more water on the mill for companies such as Moderna and BioNTech. In addition, Moderna's actions were also helped by the June approval of a vaccine for American children and adolescents aged 6 months to 17 years. Chart 3: Shares of Moderna in the MT4 platform on the M15 timeframe along with the 100 and 200 day moving averages After the outbreak of the coronavirus pandemic, Moderna was the darling of investors for obvious reasons. Shares thus reached an all-time high of almost USD 500. Since last September, however, it has gone south sharply. Looking at the P/E ratio (the ratio of share price to earnings per share), Moderna looks very attractive - the ratio is now around 5, which is a great number for a pharmaceutical company. In addition, Moderna is well funded - the selling of coronavirus vaccines have given it very interesting liquidity.   The biggest concern for investors, however, is the future of the company and its earnings once the coronavirus has passed. Apart from the vaccines mentioned above, at this moment the company does not sell any other products to the public. It has several other products in the testing phase, but their final approval and sales are uncertain. Thus, Moderna's stock may continue to thrive in the coming months thanks to further covid waves. In the long term, however, the company will need more products if it is to prosper.  
Which stock market sector is currently interesting due to its volatility?

Which stock market sector is currently interesting due to its volatility?

Purple Trading Purple Trading 18.07.2022 07:57
Which stock market sector is currently interesting due to its volatility While long-term investors in physical shares are not too interested in volatility, CFD traders can make potentially very nice profits from it. However, equity markets are vast and it can happen that an interesting title slips through one’s fingers. This article will make sure that it doesn't happen. What is volatility and how is it created If you were to equate the words volatility and nervousness (or moodiness) you would not be far off the mark. Indeed, volatility is really a measure of nervousness in the markets and where there is nervousness, there is also uncertainty. Uncertainty in the markets can arise for many different reasons, but it usually happens before the release of important macroeconomic news (on our economic calendar), you can identify those by the three bulls' heads symbols) or during unexpected events with a major impact on a particular market sector or the geopolitical order of the world (natural disasters, wars).   On the charts of trading platforms, you can recognize a highly volatile market by the dynamically changing price of the instrument, the market is said to be going up or down, and if you switch to a candle chart, you may notice large candles. Conversely, non-volatile, calm markets move sideways without any significant dips or rises. Volatility can also be historical or implied, but we'll write about that another time. Now, let’s talk about how can one potentially profit from volatility and where to find suitable markets to do so.   How to potentially profit from volatility For intraday and swing traders, volatility is the key to their potential success. For traders, often the worst situation is the so-called "sideways" market movement, where the asset in question goes "sideways" without significant movements either up or down. With small and larger price fluctuations, traders can potentially generate interesting profits. One of the most volatile markets is the stock market, where some news can trigger very significant price movements. Events such as important economic reports, a stock split, or an acquisition announcement, for example, can move the price of a given stock. In addition, traders using CFDs for share trading can also use leverage to multiply any gains (and losses) in a given volatility.   The key to potential success is choosing the right stock titles. Some stocks and sectors can be considered more volatile, while others can go longer periods of time without significant fluctuations. So how do you look for volatility? Several indicators measure price movements in stocks, perhaps the most well-known is beta, which measures the volatility of a given stock compared to a benchmark stock index (typically the S&P 500 for US stocks). The beta indicator is listed on most well-known stock sites, but we can calculate it using the following formula: Beta = 1 In this case, the stock is highly correlated with the market and we can expect very similar movements to the benchmark index.   Beta < 1 If the beta is less than 1, we can consider the stock to be potentially less volatile than the stock market.   Beta > 1 Stocks with a beta greater than 1 are theoretically more volatile than the benchmark index. So, for example, if a stock's beta is 1.1, we think of it as 10% more volatile. It is stock titles with a beta above 1 that should be of most interest to investors looking to take advantage of volatility. However, it is not enough to monitor the beta alone, traders should not forget to monitor important news and fundamentals related to the company and the market in general. Thus, it is advisable to choose a few companies whose stocks have been significantly volatile in the past and where we expect strong movements due to positive and negative news to continue. So which sectors may be worth following? In which sectors can you potentially benefit from high volatility? Energy sector The energy companies sector has historically been one of the most volatile, as confirmed by the course of 2022 so far. The price development of energy companies is of course strongly linked to the price of energy commodities. These have had a great year - both natural gas and oil have appreciated by several tens of percent since the beginning of the year. However, this growth has not been without significant fluctuations, often by higher units of percent per day. The current geopolitical situation and growing talk of recession promise to continue the volatility in the sector. In the chart below, you can see the movement of Exxon Mobil Corp shares in recent weeks. Chart 1: Exxon Mobil shares on the MT4 platform on the H1 timeframe along with the 50 and 100-day moving averages Travel industry Shares of companies related to the travel industry have always been very volatile. According to data from the beginning of the year (NYU Stern), even the companies classified as hotels and casinos were the most volatile when measured by beta. Given the coronavirus pandemic, this is not surprising. However, the threat of coronavirus still persists and there is currently the talk of another wave. However, global demand for travel is once again strong. Airlines and hotels are beginning to recover from the previous two dry years. As a result, both positive and negative news promises potential volatility going forward. In the chart below, you can see the movement of Hilton Hotels Corp shares in recent weeks. Chart 2: Hilton Hotels shares on the MT4 platform on the H1 timeframe along with the 50 and 100-day moving averages Technology Technology is a very broad term - some companies in a given sector can be considered "blue chip" stocks, which can generally be less volatile and have the potential to appreciate nicely over time. These include Apple or Microsoft, for example. However, even these will not escape relatively high volatility in 2022. Traders looking for even stronger moves, however, will be more interested in smaller companies such as Uber, Zoom Technologies, Palantir, or PayPal. In the chart below, we can see the evolution of Twitter stock, which has undergone significant volatility in recent weeks. This was linked to the announcement of the acquisition (April gap) and its recent recall by Elon Musk. With both opposing parties facing a court battle, similarly wild news is just more water on the volatility mill. Chart 3: Twitter shares on the MT4 platform on the H1 timeframe along with the 50 and 100-day moving averages There are, of course, more sectors that are significantly volatile. Traders can follow companies in the healthcare sector, for example, where coronavirus vaccine companies are among the most interesting ones. Restaurants or aerospace and chemical companies can also be worth looking at. But few things can move stock markets as significantly as the economic cycle. We'll look at the impact of expansion and recession on stocks in our next article.  
Declines At The Close Of The New York Stock Exchange, The Drop Leaders Were Nike Inc Shares

NASDAQ Futures Down More Than 1.5%, Xi Jinping Pushes Out Youth League Members From Politburo, Spotify Users Up 20% YoY

Rebecca Duthie Rebecca Duthie 26.10.2022 12:15
Summary: NASDAQ weighed down by poor MSFT & GOOGL earnings. Xi's years-long campaign to destroy the faction was successful. Spotify surpassed expectations in terms of both paid and free user growth. NASDAQ down more than 1.5% on Tuesday On Wednesday, Nasdaq futures dropped more than 1% after poor financial statements from tech titans Alphabet (NASDAQ:GOOGL) and Microsoft prompted losses at other megacap firms and fueled concerns about slowing economic growth. While Alphabet, the parent company of Google, reported disappointing ad sales and warned of a slowdown in advertising expenditure, Microsoft Corp (NASDAQ:MSFT) reported its lowest sales growth in five years and anticipated second-quarter revenue below Wall Street estimates. In premarket trade, the businesses' shares plummeted 5.7% and 6.0%, respectively, while those of Apple (NASDAQ:AAPL) and Amazon.com (NASDAQ:AMZN), who are expected to release earnings this week, dropped 3.7% and 0.6%. The disappointing results come after Snap Inc. (NYSE:SNAP) issued a warning last week over sluggish ad demand and a string of mixed earnings reports, which have added to concerns that the economy is being negatively impacted by decades-high inflation and ad-hoc interest rate hikes to combat it. ⚠️BREAKING:*NASDAQ 100 FUTURES TUMBLE 1.8% AS GOOGLE, MICROSOFT SINK AFTER EARNINGS$QQQ $GOOGL $MSFT pic.twitter.com/2rd4B4bJjP — Investing.com (@Investingcom) October 26, 2022 China’s new president pushes out youth league members The three most notable absences from China's new Communist Party leadership have one thing in common: they all rose through the ranks of the Youth League and were regarded as representatives of a once-dominant clique, whose influence Xi Jinping has now successfully quashed. Even the larger Central Committee was bypassed as Xi installed supporters in key party positions during the recent twice-a-decade leadership reshuffle. Premier Li Keqiang and Vice Premier Wang Yang, both 67 and young enough to be re-appointed to the elite seven-member Politburo Standing Committee, were left out. Hu Chunhua, a fellow vice premier and former high flyer who, at 59, had been considered a prospect for premier and, at one point, even a potential future president, failed to make it to the 24-man Politburo. Analysts said the omissions demonstrate Xi's years-long campaign to destroy the faction was successful. China's Xi deals knockout blow to once-powerful Youth League faction https://t.co/g47pd77mil pic.twitter.com/uqSDoVgG2g — Reuters (@Reuters) October 26, 2022 Spotify up 20% on Users Spotify surpassed expectations in terms of both paid and free user growth in the third quarter, pointing to the region's strength in particular. A net addition of 23 million members, or 20% more than Spotify's previous projection, brought the total number of monthly active users (MAUs) to 456 million, which is the company's highest Q3 growth to date. The number of Spotify Premium subscribers increased to 195 million, up 7 million during the time (about 1 million more than expected) and 13% annually. Ek stated on the earnings call that Spotify is considering increasing the cost of its U.S. subscription plans in response to price increases by YouTube Premium and Apple Music. “[I]t’s something we will [discuss] with our label partners,” he said. “I feel good about this upcoming year, and what it means about pricing for our service.” Spotify (SPOT) reported a quarterly loss of $0.99 per share vs the $0.88 loss that the Zacks Consensus Estimate had predicted. This contrasts with a loss of $0.48 per share in the prior year. These numbers have non-recurring expenses taken into account. This quarterly report shows a -12.50% profits surprise. This music streaming service operator surprised analysts by posting a loss of $0.91 per share during the most recent quarter when it was anticipated that it would lose $0.68, a difference of -33.82%. The management's remarks on the earnings call will be largely responsible for determining if the stock's current price movement based on previously revealed numbers and anticipated future earnings can be sustained. Compared to the S&P 500's -20.3% decrease since the start of the year, Spotify share prices have fallen by around 59.6%. Spotify reaches 456M total monthly users in Q3, up 20% YoY and topping expectations https://t.co/vRe14ATA7s via @Variety CEO also said subscribers can expect price hikes for the service sometime in 2023. $SPOT shares are down 5% in after market trading. — Yahoo Finance (@YahooFinance) October 25, 2022 Sources: finance.yahoo.com, twitter.com, reuters.com, investing.com
Exploring the Future of Metaverse Technology: Insights from Akash Girimath

Brand24: Strong Financial Results and Positive AI Sentiment Drive Upside Potential - Adding to Our Portfolio

GPW’s Analytical Coverage Support Programme 3.0 GPW’s Analytical Coverage Support Programme 3.0 30.05.2023 14:45
We add Brand24’s shares to the long side of our monthly portfolio. Brand24 is the company for which we prepare the reports for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. Rationale: (i) 1Q23 good financial results (in consequence, the realization of our FY revenues and profits forecasts is higher than a year ago) imply ceteris paribus the upside risk for our current FY forecasts, (ii) investors’ positive sentiment towards companies related to AI development/ implementation, and (iii) pending strategic options review.This is an excerpt from the Polish version of DM BOŚ SA’s research report prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0.   Upcoming events 1. Release of selected KPIs for 2Q23: mid-July2. Release of 2Q23 financial results: October 23. Release of selected KPIs for 3Q23: mid-October4. Release of 3Q23 financial results: November 295. Completion of the (co-funded by EU) AI project (Abstrakcyjna sumaryzacja danych multimodalnych): by 2023-end6. Completion of the strategic options review: by 2023-end   Catalysts 1. ARPU/ MRR growth ahead of expectations2. More dynamic new clients acquisition3. Commercial success of new products (e.g. Insights24)4. Progression of financial results ahead of expectations5. Stronger USD vs PLN6. Agility in the AI field proves to be the right approach7. Strategic options review effects boosting the Company’s development on foreign markets   Risk factors 1. Lower availability of Internet data, higher cost of their acquisition2. IT infrastructure/ software malfunction3. Maintaining financial liquidity4. Product concentration5. Inability to adapt promptly to changes in ways of presenting/ consuming content in the Internet6. FX risk (USD weakening vs PLN))7. Adverse changes in search engines algorithms8. Rise in competitive pressures in the sector9. Hike in R&D needs10. Transfer pricing risk11. RODO risk12. Inability to attract new clients and retain the existing ones13. Rising churn14. Low share liquidity15. Smaller than assumed further rise in ARPU/ MRR16. Losing eligibility to use the IP BOX tax relief   We add Brand24’s shares to the long side of our monthly portfolio. Brand24 is the company for which we prepare the reports for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0.   Rationale:  1Q23 good financial results (in consequence, the realization of our FY revenues and profits forecasts is higher than a year ago) imply ceteris paribus the upside risk for our current FY forecasts, (ii) investors’ positive sentiment towards companies related to AI development/ implementation, and (iii) pending strategic options review.        BASIC DEFINITIONSA/R turnover (in days) = 365/(sales/average A/R))Inventory turnover (in days) = 365/(COGS/average inventory))A/P turnover (in days) = 365/(COGS/average A/P))Current ratio = ((current assets – ST deferred assets)/current liabilities)Quick ratio = ((current assets – ST deferred assets – inventory)/current liabilities)Interest coverage = (pre-tax profit before extraordinary items + interest payable/interest payable)Gross margin = gross profit on sales/salesEBITDA margin = EBITDA/salesEBIT margin = EBIT/salesPre-tax margin = pre-tax profit/salesNet margin = net profit/salesROE = net profit/average equityROA = (net income + interest payable)/average assetsEV = market capitalization + interest bearing debt – cash and equivalentsEPS = net profit/ no. of shares outstandingCE = net profit + depreciationDividend yield (gross) = pre-tax DPS/stock market priceCash sales = accrual sales corrected for the change in A/RCash operating expenses = accrual operating expenses corrected for the changes in inventories and A/P, depreciation, cash taxes and changes in the deferred taxes   DM BOŚ S.A. generally values the covered non bank companies via two methods: comparative method and DCFm method (discounted cash flows). The advantage of the former is the fact that it incorporates the current market assessment of the value of the company’s peers. The weakness of the comparative method is the risk that the valuation benchmark may be mispriced. The advantage of the DCF method is its independence from the current market valuation of the comparable companies. The weakness of this method is its high sensitivity to undertaken assumptions, especially those related to the residual value calculation. Please note that we also resort to other techniques (e.g. NAV-, DDM- or SOTP-based), should it prove appropriate in a given case.   BanksNet Interest Margin (NIM) = net interest income/average assetsNon interest income = fees&commissions + result on financial operations (trading gains) + FX gainsInterest Spread = (interest income/average interest earning assets)/ (interest cost/average interest bearing liabilities)Cost/Income = (general costs + depreciation)/ (profit on banking activity + other net operating income)ROE = net profit/average equityROA = net income/average assetsNon performing loans (NPL) = loans in ‘basket 3’ categoryNPL coverrage ratio = loan loss provisions/NPLNet provision charge = provisions created – provisions released   DM BOŚ S.A. generally values the covered banks via two methods: comparative method and fundamental target fair P/E and target fair P/BV multiples method. The advantage of the former is the fact that it incorporates the current market assessment of the value of the company’s peers. The weakness of the comparative method is the risk that the valuation benchmark may be mispriced. The advantage of the fundamental target fair P/E and target fair P/BV multiples method is its independence of the current market valuation of the comparable companies. The weakness of this method is its high sensitivity to undertaken assumptions, especially those  to the residual value calculation. Assumptions used in valuation can change, influencing thereby the level of the valuation.   Among the most important assumptions are: GDP growth, forecasted level of inflation, changes in interest rates and currency prices, employment level and change in wages, demand on the analysed company products, raw material prices, competition, standing of the main customers and suppliers, legislation changes, etc. Changes in the environment of the analysed company are monitored by analysts involved in the preparation of the recommendation, estimated, incorporated in valuation and published in the recommendation whenever needed.   KEY TO INVESTMENT RANKINGS This is a guide to expected price performance in absolute terms over the next 12 months:   Buy – fundamentally undervalued (upside to 12M EFV in excess of the cost of equity) + catalysts which should close the valuation gap identified; Hold – either (i) fairly priced, or (ii) fundamentally undervalued/overvalued but lacks catalysts which could close the valuation gap; Sell – fundamentally overvalued (12M EFV < current share price + 1-year cost of equity) + catalysts which should close the valuation gap identified.   This is a guide to expected relative price performance: Overweight – expected to perform better than the benchmark (WIG) over the next quarter in relative terms Neutral – expected to perform in line with the benchmark (WIG) over the next quarter in relative terms Underweight – expected to perform worse than the benchmark (WIG) over the next quarter in relative terms     The recommendation tracker presents the performance of DM BOŚ S.A.’s recommendations. A recommendation expires on the day it is altered or on the day 12 months after its issuance, whichever comes first. Relative performance compares the rate of return on a given recommended stock in the period of the recommendation’s validity (i.e. from the date of issuance to the date of alteration or – in case of maintained recommendations – from the date of issuance to the current date) in a relation to the rate of return on the benchmark in this time period. The WIG index constitutes the benchmark. For recommendations that expire by an alteration or are maintained, the ending values used to calculate their absolute and relative performance are: the stock closing price on the day the recommendation expires/ is maintained and the closing value of the benchmark on that date. For recommendations that expire via a passage of time, the ending values used to calculate their absolute and relative performance are: the average of the stock closing prices for the day the recommendation elapses and four directly preceding sessions and the average of the benchmark’s closing values for the day the recommendation expires and four directly preceding sessions.         This report has been prepared by Dom Maklerski Banku Ochrony Środowiska SA registered in Warsaw (hereinafter referred to as DM BOŚ SA) and commissioned by the Warsaw Stock Exchange SA (hereinafter referred to as WSE SA) pursuant to the agreement on the research report preparation between DM BOŚ SA and WSE SA within the framework of the Analytical Coverage Support Program 3.0 described on the WSE SA website: https:/www.gpw.pl/gpwpa (hereinafter referred to as the Agreement). DM BOŚ SA will receive a remuneration for the research report in accordance with the Agreement.  
Hungary's Retail Sales Suffer, Industry Weakness Persists, and Household Purchasing Power Declines

Voxel: Positive Growth Outlook and Strategic Additions to Portfolio

GPW’s Analytical Coverage Support Programme 3.0 GPW’s Analytical Coverage Support Programme 3.0 31.05.2023 09:31
This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program. 3.0. This is an excerpt from the Polish version of DM BOŚ SA’s research.     We add Voxel’s shares to the long side of our monthly portfolio. Voxel is the company for which we prepare reports for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. Rationale: We expect the Company’s 2Q23 financials to be higher yoy not only due to last year’s low base effect (EBITDA at PLN 18 million, NI at PLN 5 million in 2Q22), but also on the back of rising volumes of diagnostic services performed (we assume a qoq growth) coupled with materially higher prices of medical procedures (by 20%- 40%).   We expect a yoy improvement of Vito-Med’s hospital’s performance resulting from restructuring (from February revenues have been on the rise) with better results of Scanix (significantly higher profitability already in 1Q23).     We add Voxel’s shares to the long side of our monthly portfolio.   Voxel is the company for which we prepare reports for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. Rationale: We expect the Company’s 2Q23 financials to be higher yoy not only due to last year’s low base effect (EBITDA at PLN 18 million, NI at PLN 5 million in 2Q22), but also on the back of rising volumes of diagnostic services performed (we assume a qoq growth) coupled with materially higher prices of medical procedures (by 20%- 40%).       We expect a yoy improvement of Vito-Med’s hospital’s performance resulting from restructuring (from February revenues have been on the rise) with better results of Scanix (significantly higher profitability already in 1Q23).
CNH Finds Support Amid Battle for Funding in Money Markets

Mixed Signals: Services PMIs Hold Up, Fed Minutes Reveal Divergence, and AO World's Recovery Path

Michael Hewson Michael Hewson 03.07.2023 08:36
Services PMIs (Jun) – 05/07 - despite the dire start of manufacturing activity, services have held up well but even here we are seeing pockets of weakness with France seeing a sharp drop in the flash numbers a few days ago, sliding from 52.5 to 48, while activity in the rest of the euro area remains broadly positive. This is an area that could help boost economic activity in Italy and Spain now we're in the holiday season and which may help avert a 3rd quarter of weakness. We're also expected to see positive readings from the UK and the US.   Fed minutes – 05/07 – recent briefings from various Fed officials do suggest that a divergence of views is forming on how to move next, as well as in the coming months, and while the commitment to a pause in June was well flagged the commitment and guidance did pose a bit of a problem to the Fed given the strong economic data only days before the meeting in question. Powell managed to overcome that with a strongly hawkish message at his press conference along with an upgrade to the central banks key economic forecasts. A number of members changed their dots to reflect the prospect that they were prepared to raise rates twice more by the end of the year, with a hike in July looking increasingly likely.  This was somewhat surprising given markets were pricing one more rate hike, however key in amongst this is the Fed's determination that markets stop pricing rate cuts by the end of this year. This insistence of pricing in rate cuts by year end has been one of the key characteristics that has helped drive recent gains in stock markets. This slowly appears to be being priced out, as is the possibility that the Federal Reserve, along with other central banks, looks to prioritise pushing inflation down at the risk of raising the level of unemployment. This week's minutes ought to give us an indication of the thought processes of the more dovish members of the FOMC, and how comfortable they are with the prospect of further rate rises.    AO World FY 23 – 05/07 – has had its share of problems after getting a huge lift during the pandemic as business for electrical goods shifted online. These growing pains presented problems of their own in terms of scaling its operations so when the inevitable slowdown happened the business struggled to cope as costs surged. Back in 2021 the shares rose to a record high of 443p, as a pandemic buying frenzy pushed the shares up from lows of 48.5p in the space of 9 months. It's taken a little bit longer to round-trip that journey with the shares hitting a record low back in August of 39p. We've seen a decent recovery since then, helped by a number of guidance upgrades this year, one on January, with the focus on reducing costs with revenues set to see a 17.2% decline from last year. In March EBITDA guidance was raised again, to between £37.5m and £45m, with management citing further margin improvements. In April this was followed by a Q4 trading update which predicted UK revenues of £1.13bn while updating its profit guidance to the top end of its recent range upgrade of EBITDA of between £37.5m to £45m. In a sign of confidence regarding AO's turnaround plan, in June Mike Ashley's Fraser Group acquired a 19% stake in the business at 68p per share in a welcome boost for the online retailer.  
Positive Shift in Inflation Structure: Core Inflation Falls in Hungary

easyJet Q3 2023: Optimism Amidst Concerns of Higher Fares and Travel Disruptions

Michael Hewson Michael Hewson 17.07.2023 08:36
  easyJet Q3 23 – 20/07 – having got off to a flying start to the year easyJet shares have plateaued and have settled at a steady altitude just below one-year highs. While there has been steady optimism that the travel sector will have its best year since 2019 as travel returns to normal there is also concern that higher fares could mean that capacity levels may never return to the levels, we saw pre-Covid. Travel disruption continues to be a factor determining, as well as deterring, a return to normal, nonetheless optimism remains high that easyJet will be able to see a return to profit this year. Its H1 numbers saw the airline report revenues in line with forecasts at £2.69bn, and a pre-tax loss of £411m, while costs were confirmed at £3.1bn. Airline ancillary revenue saw an improvement, rising 67% to £767m, with total revenue per seat rising 40% to £66.4m, although costs per seat were also higher at £77.6m, a rise of 19%. The airline's load factor was 87.5% over the half year, up from 77.3% a year ago with an expectation that this would move into the 90% during H2. Its H2 guidance of 56m seats, a rise of 9%, was left unchanged with Q4 capacity expected to come in at around pre-pandemic levels of 94%. The growing holidays operation continues to improve and expand, with customer numbers increasing to 0.6m during H1, a 0.4m increase on the same period last year. Revenues in this part of the business also improved, rising to £173m, with an expectation that the business will see an annual profit in excess of £80m. In the first half of this year the business generated a profit of £10m. EasyJet said it will also be expanding its holiday package market, with Switzerland being added this summer with a view to starting in early 2024. With the summer season well under way consensus forecasts for Q3 revenues to rise to £2.27bn, with passenger revenue rising to £1.75bn, with a load factor of 89.8%. This target might need to be revised given the amount of disruption seen so far this year due to French industrial action which also caused easyJet to cancel 1,700 flights earlier this month over the summer period.    
Korean Economic Update: Cloudy Third-Quarter Prospects Amidst Export Challenges and Weakening Domestic Demand

Lloyds Shares Slip Despite Raised Guidance, NatWest Row Continues

Michael Hewson Michael Hewson 26.07.2023 10:17
Lloyds shares slip back, despite raising guidance, as NatWest row rumbles on   By Michael Hewson (Chief Market Analyst at CMC Markets UK) It was always set to be a big week for the UK's banks with the release of their Q2 numbers with the expectation that their profits would come under scrutiny due to the low savings rates being received by their respective deposit rates. With mortgage rates surging and deposit rates lagging well behind several politicians have been calling for further windfall taxes on a sector that has by and large performed well over the last few years. Events have taken over and the resignation of NatWest CEO Alison Rose has been forced to step down due to a row over the leaking of details of the bank's relationship with Nigel Farage. The saga raises questions over the governance of the bank and more specifically the Coutts business. It also raises questions over NatWest chairman Howard Davies and the oversight of GDPR and other client confidentiality rules. Only 24 hours ago, Davies and the board expressed full confidence in Rose after she admitted being behind the leak to a BBC journalist. On any other level this behaviour would have invited a disciplinary procedure against a more junior member of staff and probable dismissal, yet for some reason the board adopted the position of nothing to see here.   This would suggest a deeper problem behind the bank's governance and the rules around the behaviour of staff, as well as the future of Howard Davies as Chairman. On what world would a junior member of staff have been allowed to stay on with a simple apology if they had been found to have committed a similar transgression? Howard Davies has serious questions to answer about the bank's disciplinary procedures. Do they not apply to senior management? This story may have some legs in it yet with the banks results on Friday likely to be overshadowed by the row.     Moving onto today's Q2 numbers from Lloyds Banking Group and shareholders will be looking for positive news given that the shares have been on a slow downward track since cresting at one-year highs in February and falling to 7-month lows in June. When Lloyds set its guidance in in February the bank said it expected to see net annual interest margin to improve to greater than 3.05%, up from its previous estimate of 2.8%, while operating costs are set to remain static at £9.1bn, rising to £9.2bn in 2024.     Today's H1 numbers has seen the bank raise its full year guidance on NIM to be above 3.1% while keeping operating cost forecasts unchanged.   Despite this more positive outlook the shares have slipped back after profits fell short of expectations. This miss on profits appears to be down to an increase in provisions for non-performing loans, which came in at £419m, and a fall in Q2 NIM to 3.14% down from 3.22% in Q1.      On the underlying business customer deposits fell by £5.5bn, an improvement on the £8bn fall in Q1, helped by an increase in retail savings balances. In a sign that loan demand is slowing lending to customers fell by £1.6bn in Q2 and by £4.2bn from a year ago.     Statutory profit before tax in Q2 came in a £1.6bn, pushing H1 profits up to £3.87bn on revenues of £9.54bn.   While today's decline in the share price is disappointing and has translated into similar weakness in the likes of the Barclays and NatWest share price, the reaction seems somewhat overdone given that on all the major metrics the bank is performing well.     Of course there are justifiable concerns over the outlook for the UK economy, with the increase in bad loan charges, but profitability is still strong, and margins are healthy as well as being above the levels we saw a few years ago when the share price was much higher.
Upcoming Corporate Earnings Reports: Ashtead, GameStop, and DocuSign - September 5-7, 2023

Upcoming Corporate Earnings Reports: Ashtead, GameStop, and DocuSign - September 5-7, 2023

Michael Hewson Michael Hewson 04.09.2023 10:36
Ashtead Q1 24 – 05/09 – has been one of the better performers on the FTSE100 this year, Ashtead's exposure to the US market ensuring that it has benefitted from the resilience of the US economy, through its US subsidiary Sunbelt. When the company reported its Q4 and full year numbers back in June the shares slipped back. Increased rental revenue has helped boost revenues and profits, with Q4 revenue rising from $1.87bn a year ago to $2.13bn. Full year revenues rose by 24% to $9.67bn, helping to boost pre-tax profits by 30% $2.15bn. For Q1 revenues are expected to rise to $2.65bn, with Sunbelt US expected to contribute $2.27bn of that, with operating margins expected to remain steady at 30%. Net profit is expected to increase to $476m.     GameStop Q2 24 – 06/09 – the last two earnings reports have seen decent gains in the GameStop share price, however on both occasions these spikes proved to be the top of the moves higher with the share price now close to its lowest levels this year. It would appear that the higher rate environment is blunting risk appetite to these so-called meme stocks and its not hard to see why. While the company posted a surprise profit in Q4, it slipped back to a loss in Q1 of -$0.14c a share and is expected to see a similar loss in Q2 as well. Q1 revenues came in at $1.24bn, with hardware and accessories making up over half of that total at $726m. For Q2 revenues are expected to come in at $1.14bn, although inventories should reduce to $600m. Same store sales are expected to decline by 0.1%.   DocuSign Q2 24 – 07/09 – DocuSign shares have had a disappointing time of it year to date, its shares slightly lower year to date, despite generally seeing their recent quarterly numbers coming in better than expected. They haven't really recovered from the weak guidance it issued at the end of last year when it gave weak guidance for Q1. When DocuSign reported in June, revenues came in comfortably ahead of expectations at $661.4m, while profits came in at $0.72c a share, sending the shares sharply higher initially, but the gains didn't last, even as guidance was upgraded for Q2 revenue of $675m to $679m, while full year revenue forecast was raised to between $2.71bn to $2.73bn.    
US Weekly Jobless Claims Hit Lowest Level Since February; Apple Shares Slide Amid China's iPhone Crackdown; USD/JPY Shows Volatility Amid Interest Rate Fears and Tech Stock Woes

US Weekly Jobless Claims Hit Lowest Level Since February; Apple Shares Slide Amid China's iPhone Crackdown; USD/JPY Shows Volatility Amid Interest Rate Fears and Tech Stock Woes

Ed Moya Ed Moya 08.09.2023 13:45
US weekly jobless claims drop to lowest levels since February Apple shares slide as China’s crackdown on iPhone use grows; Losing over $200 billion in market value BOJ’s Nakagawa reiterates stance that BOJ and gov’t are monitoring FX rates and impact on economy The US dollar index hit its highest level since March as risk aversion runs wild on higher interest rate fears and as global growth concerns spread to the US.  The dollar is poised to have an eight straight week of gains, but that is somewhat capped against the Japanese yen.  US stocks are falling on concerns that the Fed might not be done tightening and over uncertainty over how far China’s iPhone ban will extend into other parts of American technology.  Also weighing on sentiment is the global growth story that remains uninspiring following slightly better-than-expected China trade data and as fears grow for German industrial output.  For the US economy, the labor market is not softening quickly enough and that makes the Fed stick to the hawkish script that they might not be done raising rates.  The yen got a minor boost after BOJ Nakagawa stated that the central bank will closely coordinate with the government in monitoring foreign exchange rates and paying due attention to any impacts on the economy. Japanese officials will remain consistent with this messaging, but markets won’t react that much unless we significantly more yen weakness. Apple The Nasdaq is sinking as one bad Apple spoils a bunch of mega-cap tech stocks.  Apple’s growth story is heavily reliant on China and if the Beijing crackdown intensifies that could pose a big problem to the bunch of other mega-cap tech companies that rely on China.  The WSJ reported that China is banning iPhone use for government officials at work.  China is delivering some harsh restrictions on overseas technologies, and this could really hamper Apple’s revenue outlook as China is their largest foreign market.  The mega-cap tech trade appears ripe for pullback, but most investors will likely be eyeing the early AI winners and not so many companies that are still in the early stages of their investment.  Microsoft and Nvidia will likely outperform their peers.    USD/JPY Daily Chart     Earlier verbal intervention might have helped stall the dollar’s rally against the yen, but this latest pressure on tech stocks is significantly weighing on sentiment, which could help keep the yen supported. Japan officials are getting unexpected support from a bad Apple outlook, which help support a dollar-yen dip back to the lows seen earlier in the month.  The dollar temporarily surged after jobless claims fell to the lowest levels since February, but some are expecting that to influenced by the impact of Hurricane Idalia. The key levels for dollar-yen remain 145.80 and 148.00, with volatility expected to remain elevated given a breach of either the 145 or 150 levels.  If the broader dollar strengthening cycle remains that will eventually tip the scales of the massive divergence in central bank policy. One more Fed rate hike getting fully priced in might not be enough to get USD/JPY back to last October’s high, so you might start to see some bearish positioning.    
Trend Reversal: West Texas Oil's Recent Minor Pull-Back Likely Ended

Apple's iPhone 15 and Apple Watch Series 9 Unveil Disappoints Investors, Nasdaq 100 Falls 1.1%, Adobe's Stock Declines 4% Ahead of Earnings Report, and OPEC Predicts Tight Oil Market: Market Recap

Saxo Bank Saxo Bank 13.09.2023 08:32
Investors were not impressed by the iPhone 15 and Apple Watch Series 9 reveal, causing Apple's shares to drop 1.8% and affecting the Nasdaq 100, which fell 1.1%. Adobe's stock also declined by 4% ahead of its upcoming earnings report. Meanwhile, OPEC's forecast of a tight oil market led to crude oil prices surging to 10-month highs. OPEC anticipates a significant 3.3mb/d supply deficit in Q4, one of the largest in over a decade. CAD outperformed in the G-10, while EUR made gains following an ECB leak about potential inflation forecast increases. Today's focus is on the US CPI report.     US Equities: Investors were not impressed by the iPhone 15 and Apple Watch Series 9 unveiled on Tuesday, seeing the shares of Apple drop by 1.8%. The Apple decline weighed on the Nasdaq 100 which slid 1.1%. Adding to the selling was a 4% decline in Adobe ahead of reporting on Thursday. Another focus in the tech space was Oracle, which plummeted 13.5% on weak cloud sales. The S&P500 shed 0.6%. Fixed income: The curve flattened as the 2-year yield rose 3bps to 5.02% while the 10-year yield slid 1bp to 4.28%. The short end was under some pressure ahead of today’s CPI data while the long ends held firm and absorbed the USD35 billion 10-year auction and around USD20 billion corporate bond issuance well. China/HK Equities: The Hang Seng Index ended a lackluster session with a thin trading volume session, down 0.4%. Energy and pharmaceutical names weighed on the benchmark. The Hang Seng Tech Index shed 0.5% as gains in Xiaomi and EV makers were offset by losses in Internet stocks. FX: Higher crude oil prices made CAD the G-10 outperformer with USDCAD down to 1.3550 from 1.3590 but EUR attempted to catch up in late NY/early Asian hours on ECB leak that inflation forecasts may be raised higher which are seen to be raising the prospect of a hike this week. EURUSD jumped higher to 1.0760 with EURGBP above the 0.86 hurdle as GBPUSD dipped below 1.25 on not-so-hawkish labor market. USDCNH sticking close to 7.30 and AUDUSD around 0.6425. Commodities: Crude oil prices rallied to fresh 10-month highs after OPEC forecast a significantly tight market. In its latest monthly outlook, the oil group said the market may experience a shortfall of 3.3mb/d in the fourth quarter of the year. This would make it one of the largest deficits in more than a decade. OPEC’s estimate was at odds with EIA’s predicted deficit of 230kb/d, and the IEA’s monthly report will be on watch today. Prices eased from the peaks as API reported a crude inventory build after four straight weekly draws although Cushing hub stockpiles declined, and official data will be reported today. Gold dropped below 200DMA as inflation concerns returned, bringing more fear of rate hikes and US CPI will be on watch today.    

currency calculator