Key Stories from the past week: The market feints while earnings season gets under way Key Stories from the past week: The market feints while earnings season gets under way Key Stories from the past week: The market feints while earnings season gets under way

Key Stories from the past week: The market feints while earnings season gets under way

Macro
Saxo

Despite earnings season kicking off, and some important US economic data on the wires, it was a relatively stable week for US and European markets - equity benchmarks and FX pairs saw modest moves week-on-week. Asia on the other hand was a standout focus as China returned from Golden Week for investors to price the recent stimulus package. Meanwhile, oil and gold fluctuated with the various macro inputs. More below on this week’s key stories.

Chinese shares take investors on a wild ride
Chinese equities proved highly volatile as trading recommenced following Golden Week. After a 30% rally in September valuations hit a setback as Beijing withheld major new stimulus announcements. Price volatility seems to have been exacerbated by margin financing. All eyes now turn to the Chinese Ministry of Finance policy briefing on Saturday for clues on fresh fiscal support.
Investors, analysts eye bigger China stimulus at Saturday briefing

Google breakup?
The US Department of Justice announced it is considering options to break-up Google to address the search engine’s monopoly. The unknown result could be a value overhang until a final decision is made. Whether the company is more valuable as a whole or in pieces remains to be seen, a completed break-up could provide evidence of hidden value and internal synergies, which would confirm monopolistic traits and justify the break-up. The share price has fallen 3% this week while Saxo clients have been net buyers.
Alphabet Might Get Broken Up

Thursday's data dump
Inflation and jobs are currently the two most important macro inputs in the US, so Thursday’s CPI data and jobless claims were highly anticipated. CPI was slightly hotter than expected, while jobless claims came in materially above consensus. The labour market seems to hold the most attention as the data boosted the rate-cut premium. Nasdaq futures were the product of choice for Saxo clients to play the events, albeit moves were relatively calm.
US Stocks See Modest Moves Following Inflation Data

Tesla's 'We Robot' event leaves much to be answered
Elon Musk unveiled Tesla's Cybercab robotaxi, targeting production by 2026 for under $30,000, while also introducing a 20-passenger Robovan concept. Tesla shares reacted badly with investors unimpressed at the lack of details on near term plans for these concept models as with focus now shifting back to fundamentals.
Five takeaways from Tesla's Robotaxi show

US Bank Earnings
US banks made a positive start to the Q3 earnings season with beats from JP Morgan, Wells Fargo, and BNY Mellon on Friday. JP Morgan is the most held US financial name across Saxo’s client base, and the company presented a decent beat to Net Interest Income, boosting the share price. BNY Mellon and Wells Fargo both reported profits that topped expectations. Although the macro picture is arguably the more important driver over the coming weeks, it is positive for equity markets to get earnings season off to a good start.
Q3 earnings begin

Next week markets will reacting to the Chinese finance policy briefing (Sat 12th Oct) and will also get China Q3 GDP figures (Thurs). September CPI data from UK (Weds), EU (Thurs) and the ECB interest rate decision (Thurs) with the market anticipating a 25bps cut to the current rate of 3.5%. Third quarter earnings highlights include; UnitedHealth Group, Johnson & Johnson, Bank of America, Goldman Sachs, Citigroup (Tues). ASML, Abbott Laboratories, Prologis, Kinder Morgan (Weds). Taiwan Semiconductor, Netflix, Morgan Stanley (Thurs). Proctor & Gamble, American Express, Schlumberger (Fri).

Quarterly Outlook 2024 Q3

Sandcastle economics

01 / 05

  • Macro: Sandcastle economics

    Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.

    Read article
  • Bonds: What to do until inflation stabilises

    Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain inflation and evolving monetary policies.

    Read article
  • Equities: Are we blowing bubbles again

    Explore key trends and opportunities in European equities and electrification theme as market dynamics echo 2021's rally.

    Read article
  • FX: Risk-on currencies to surge against havens

    Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperform in Q3 2024.

    Read article
  • Commodities: Energy and grains in focus as metals pause

    Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities in Q3 2024.

    Read article
Disclaimer

Saxo Capital Markets (Australia) Limited prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at https://www.home.saxo/en-au/legal/.

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments.Saxo Capital Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Please read our disclaimers:
- Full Disclaimer (https://www.home.saxo/en-au/legal/disclaimer/saxo-disclaimer)
- Analysis Disclaimer (https://www.home.saxo/en-au/legal/analysis-disclaimer/saxo-analysis-disclaimer)
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)

Saxo Capital Markets (Australia) Limited
Suite 1, Level 14, 9 Castlereagh St
Sydney NSW 2000
Australia

Contact Saxo

Select region

Australia
Australia

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-au/about-us/awards

Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide, Product Disclosure Statement and Target Market Determination to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation. The Target Market Determination should assist you in determining whether any of the products or services we offer are likely to be consistent with your objectives, financial situation and needs.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.

Please click here to view our full disclaimer.