“The hardest thing to do in the stock market is nothing.”
— Jesse Livermore
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A comparatively quiet session yesterday, with (US) stocks quickly recovering from a weak opening and closing the day with decent gains. The S&P 500 for example advanced about three quarters of a percentage point, with winners (251) and loser (250) equally levelled. Seven out eleven sectors closed in the green, led by a strong advance in energy stocks:
Europe’s STOXX 600 index, which was up only about a quarter of percentage point, saw nevertheless an encouraging 28 stocks hit a new 52-week high versus only four a new 52-week low.
Most market action was influenced by corporate earnings rather than macroeconomic data or geopolitical pacifier tossing …
You know we discuss corporate news & earnings less in this space, but some of the moves are still worth observing: GRAB +12%, RACE +7%, PYPL -13%, SPOT +13%, MRK -10% serve as examples. And of course we also had Alphabet, the parent company of Google, reporting post market close and a drop of 7% hints to some disappointed over their capex-related earnings “miss”.
Yields on the US 10-year treasury bond dropped below 4.50%, probably on the back of a weaker JOLT Job report (albeit it is to note that the JOLT report is a survey and a poorly one responded to at it). Nevertheless, the reading goes inline with anectodal data we hear of a weaker jobs markets than seen on the surface.
In currencies, the Dollar has softened versus most currencies over the past few hours, exception CAD and MXN (which had found strength previously already).
Staying on the CAD for a moment, the following graph show that the Loonie is rebounding (inset graph) from an important long-term support (large graph):
That’s all for today - have a great day!
"Who's vulnerable to U.S. tariffs? Everyone.
Bloomberg finds that the largest economies (like the EU and China) are 2 and 5 times more dependent on exports to the US than vice-versa. Vietnam tops the list and is 758 times more dependent.