Macro: Sandcastle economics
Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.
Market Strategist
Summary: Markets rally on the certainty of the US Fed booking 7 rate hikes this year, which supports profitability of US banks, and bond holding stocks, as rates will rise to 1.9%, while the Fed forecasts 3.5% GDP and 4.3% inflation. On the flip, basic math suggest doomsdays is here for US high debt holding companies, and US tech stocks in crowded-slowing markets. Meanwhile, it’s risk-on in Australia with Block and Pointset charging 10%. Elsewhere, investors rush to buy the dip in HK’s Hang Seng, China property and China tech stocks after Beijing pushes to stabilise markets; easing tech regulation, and vowing to support the property sector, with Country Garden Holdings up 27%, And JD.com up 11%. In commodities, the key steel ingredient, iron ore, rocked back to $150 heading toward $170. While copper, aluminum, lithium, timber, limestone, nickel will likely see rising demand, supporting stocks on the ASX.
Co-written by Market Strategists Jessica Amir in Australia and Redmond Wong in Hong Kong
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