Macro: Sandcastle economics
Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.
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Key Stories from the past week: Lingering Inflation Hits Market Sentiment
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Market risk sentiment was lacking as sticky inflation, rising Treasury yields, and a few high profile revenue misses from Salesforce and Dell knocked investor confidence. The VIX volatility index increased +14% indicating heightened price fluctuations as we headed into the weekend. Saxo clients continue to add to market outperformers, Nvidia, Advance Micro Devices and Novo Nordisk while at the same time taking a more neutral stance on the immediate direction of major indices.
What's driving AstraZeneca to new all time highs
After a challenging period in the early 2010s, AstraZeneca underwent significant restructuring to increase R&D investment, focusing on rebuilding its drug pipeline, particularly in oncology which now positions the company for future growth. The company's commitment to innovation and a robust oncology pipeline aims to redefine cancer care and double revenue to $80 billion by 2030.
- AstraZeneca: From patent cliff to oncology leader
Japanese equities have a lot of factors going for them right now
Japanese equities finished the week on a high as CPI inflation picked up to +1.9%. Japan's Topix Banks index is closing the month with 7% gains, as BOJ's exit from negative rates boosts net interest income. Large banks like MUFG and Sumitomo Mitsui forecasted record profits on higher rates, and have announced plans to increase dividends and share buybacks.
- Understanding the Surge in Japanese Equities
Stubborn inflation prints sets up for a key ECB policy meeting next week
Year-on-Year Euro-area inflation accelerated to 2.6% in May, potentially blunting the scope for interest rate cuts. Traders maintained wagers for a cut at the European Central Bank meeting next week, but reduced bets on easing after that. A cut from the ECB is increasingly looking like an outlier from other major central banks who are waiting for more evidence inflation is back to target.
- ECB policy preview
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