Bassanese Bites Archives | BetaShares

Shelter in place

Global markets
The continued rise in U.S. COVID-19 cases further undermined risk sentiment last week – even though, as U.S. President Trump noted, increased testing appears an important factor behind the rise (although the percentage of positive tests is also increasing). The S&P 500 lost 2.9%, with a hefty 2.4% decline on Friday.

Read more

Temperature check

Global markets
Global equities tried hard to remain positive last week even as new CV-19 cases continued to emerge in Beijing and some U.S. states. After the previous Thursday’s collapse in prices, equities bounced higher early last week following the Fed’s (rehashed) announcement that it would buy corporate bonds.

Read more

Reality Bites

Global markets
After basking in fever pitch risk-on sentiment in the previous week, global markets slumped last week as dour economic forecasts from the U.S. Federal Reserve and a rise in COVID-19 cases in some U.S. states unnerved investors. Equities, bond yields and the $A dropped back, while gold firmed. Lower bond yields also partly reversed the previous week’s early attempt at a rotation from growth to value sectors such as financials.

Read more

FOMO Fever

Global markets
Good news is good news. Bad news is good news. And no news is good news also! Global equities pushed higher last week as positive ‘re-opening’ data, no second waves, and confidence in unrelenting fiscal and monetary stimulus continued to buoy investor sentiment. Key U.S. manufacturing and non-manufacturing indices bounced a little more than expected in May,

Read more

Value rotation

Global markets
Risk-on sentiment prevailed across global markets last week – so much so that even previously neglected sectors such as financials began to attract interest. Key drivers were upbeat comments from JP Morgan CEO Jamie Dimon, and the fact Trump failed to follow through on threats to sanction China over Hong Kong.

Read more

Breakout?

Global markets
It was risk on again last week in global markets as seemingly encouraging COVID-19 vaccine trials got investors excited early on, before experts started to raise questions about the significance of the results. Either way, the share price of the company in question, Moderna, popped following what was only a press release (not a peer reviewed scientific study),

Read more

Testing support

Global markets
Last week I headlined my Bites report ‘Testing resistance’, given the focus on whether the S&P 500 could break through recent highs of 2,930 and march onward to 3,000. As it turned out, the market did test, but failed to break, this resistance, given the double blows from both U.S.

Read more

Testing resistance

Global markets
Global equities continued to remain focused on re-opening hopes last week, disregarding apocalyptic economic data from most corners of the world outside of China. The fact Wall Street could rally in the face of 20 million job losses in April, and a surge in the unemployment rate to 14%,

Read more

Reality check

Global markets
Despite a strong rebound in oil prices, last week was perhaps a reality check for global markets as the depth of the downturn in both economic growth and corporate earnings became ever more evident. U.S. Q1 GDP, consumer confidence and manufacturing conditions were all worse than the already horrible numbers expected by the market.

Read more

Oil Slick

Global Markets
Not much has been able to roil the US stockmarket of late, but last week’s negative print on the front month WTI oil futures contract finally did the trick. The S&P 500 dropped almost 5% over two days but then staged a feisty comeback to end the week down only 1.3% –

Read more