Weekly wrap: insights and outlooks

Dear reader,

We’re concluding a busy week, especially on the macroeconomic front. Thursday saw the European Central Bank (ECB) make history with its rate cut. While anticipated and signalled in advance, this move marks a dynamic shift from aggressive rate hikes to a more business-friendly stance, making borrowing cheaper for companies. This ECB cut precedes any action by the American Federal Reserve (Fed), which doesn’t happen often.

Friday brought us the much-anticipated nonfarm payroll figure, a crucial indicator influencing the Fed’s rate decisions. The market was expecting 182,000 new jobs, but the actual figure was 272,000 shattering expectations.

Spotlight on Nvidia

Also on Friday, Nvidia demanded attention again with a 1:10 stock split after market close. This move, often reserved for stocks that have skyrocketed due to tremendous growth, reflects Nvidia’s stellar performance driven by the AI boom. Year-to-date, Nvidia has soared over 150%, and an astonishing 3,200% over the past 5 years. You can read more about Nvidia and its relatively recent earnings report in this analysis by our Head of Equity Strategy, Peter Garnry.

Looking ahead

Next week, all eyes – or ears – will be on the Fed’s FOMC meeting on Wednesday. While a rate hike is unlikely, the market will be keenly listening in on the statement and press conference for any hints about future rate cuts, which could spark short-term market volatility, although it’s not expected to cause major stirs unless something unexpected happens.

We’ll also be keeping a close watch on inflation data via the consumer price index (CPI) for the US, EU, and China. Plus, the Bank of Japan’s interest rate announcement, which most likely will be relevant for local and potentially forex markets only.

Just like a job-seeking LinkedIn profile, we’re in-between major earning reporting periods. Still, a few notable companies like Oracle (Tuesday), Broadcom (Wednesday), Adobe (Thursday), and Tesco (Friday) will keep things interesting next week.

Stay ahead of the game by visiting our inspiration pages for insights that could guide your next investment or keep track of financial events in our calendar.

We wish you a successful week in the financial markets and beyond.