QuiCQ 22/08/2024
Party Time!
“ A committee is a cul-de-sac down which ideas are lured and then quietly strangled”
— Sir Barnett Cocks
Prefer to read today’s QuiCQ in PDF format? No prob, download it here!
But please, do not complain about the formatting!
As central bankers join for a free weekend away from home symposium at Jackson Hole, Wyoming, investors will pay attention to every word blubbered, especial those by Fed Boss Jay Powell. I believe it will be largely a non-event, especially as yesterday’s Fed minutes were kind of a spoiler alert to a 25 bp rate cut in a few weeks time. True, the NFP revision, also revealed yesterday, would give them an excuse to cut 50 bp. I don’t think so, and seemingly futures markets agree with me, having barely budged after that fore-mentioned NFP number revision yesterday.
Markets closed a tad higher, reaccelerating into the session end, in what felt like a quiet session. 9 out of 11 sectors closed higher, led by consumer discretionaries, the up/down ratio was four-to-one and 41 stocks hit a new 52-week high in the S&P 500 versus none a new 52-week low. And if you wondered, that number was 17 new highs and one new low on the STOXX 600 Europe index.
Very little movement on the global rates side, with the yield curves on both side of the Atlantic slightly steepening.
The Dollar continued its slide versus most major currencies, with the EUR/USD cross ticking just below 1.1150. Gold is holding above $2,500 the ounce, whilst oil, to the surprise of many, including yours truly, as dropped to its lowest level since January.
Today, look out for PMIs reported around the globe. Powell is not due to speak at Jackson Hole until tomorrow (today is probably just welcome drinks).
Last Monday, Alphabet (aka Google) celebrated their 20 years of being listed on the stock exchange. The stock has gained over 7,600% since then - not a bad feat. Did anyone do better of the same period? You bet, but only eleven. The fantastic table from the fine folks at Bespoke Investment Group below shows those eleven “Google beaters” and also some close followers.
