Weekly Market Review by Anzo Capital

Commercial Content Analysts
81

Weekly Market Review by Anzo Capital

:calendar: Reflecting on the week of 25 Oct 2021

US Economy Is Overheating

US economic growth figures were expected to slow in the third quarter as a rampant delta variant put the brakes on recovery. However, GDP figures came out worse than expected. An output of 2% has been estimated for the three months ending September. Consumer demand still remains strong, as nominal GDP reflected a 7.8% rise and was eroded by inflation in the headline number. The number also seems considerably lower when compared to the previous quarter where pent-up demand accelerated output due to a reopening of the economy. The fourth quarter is expected to be better, with the CB Consumer Confidence index turning positive for the first time in three months in October. Capital goods orders also climbed for the seventh month in a row during September, maintaining growth momentum and indicating strong business investment going into the latter part of the year.

Stay informed with our real time comprehensive market analysis reports and financial news here.

82

Weekly Market Review by Anzo Capital

:calendar: Reflecting on the week of 01 Nov 2021

The Wait Is Over

The US labour market looks to be making a moderate recovery with 531,000 new jobs added in October, against a forecast 450,000. Another 235,000 was also added to September’s data indicating that after a long period of weakness, the jobs market may be turning a corner. The rise will make a dent in the recovery of the 22 million jobs that were lost during the pandemic. At the November FOMC meeting, the Fed predictably announced that it will begin to taper $15 billion in bond purchases each month, starting this month. The current purchasing rate stands at $210 billion per month. The committee also recognised the persistence of inflationary pressures although no change was made to the Fed Funds rate at this meeting. The Fed will now have a task of managing inflation expectations.

Stay informed with our real time comprehensive market analysis reports and financial news here.

83

Weekly Market Review by Anzo Capital

:calendar: Reflecting on the week of 08 Nov 2021

All Bets On An Early Fed Rate Hike

Futures markets have priced in a July 2022 rate hike from the Fed after October’s inflation numbers surprised to the upside. Consumer prices climbed 0.9% for the month against a forecasted 0.6% rise. Annualized rates have now soared well beyond the price stability mandate of 1-3% annualized inflation. The Fed has stated aims to complete the tapering of its asset repurchasing program by the middle of next year, with interest rate hikes expected soon after. Despite the holiday season and associated hiring trends, unemployment claims unexpectedly moved higher in the week ending 6th November. A total of 267,000 new claims were recorded representing a drop of 4,000 on the previous week, indicating that a moderate recovery is still underway for the U.S. labour market.

Stay informed with our real time comprehensive market analysis reports and financial news here.

84

Weekly Market Review by Anzo Capital

:calendar: Reflecting on the week of 15 Nov 2021

US Spenders Out In Force

Despite a backdrop of falling consumer confidence in the U.S., consumer spending remained elevated in October, with a rise of 1.7% when compared with September’s figures. Leading the surge, was the energy sector due to rising prices at gasoline pumps which saw the subcomponent register a 3.9% rise. Spending also remained higher in sectors recovering from lockdown restrictions with the food and beverage and hospitality sectors enjoying a rebound in demand. Rising incomes should result in a strong quarter of growth for the last three months of the year. These strong growth prospects were further confirmed by a sharp rise in output from manufacturers. The most notable component for growth was the motor vehicles and parts which rocketed to an 11% rise for October.

Stay informed with our real time comprehensive market analysis reports and financial news here.

85

Weekly Market Review by Anzo Capital

:calendar: Reflecting on the week of 22 Nov 2021

Will Omicron Put The Brakes On A Global Recovery?

Private sector growth in Germany continues to accelerate, as new work continues to roll in albeit at a more moderate pace. Inflationary pressures are being felt by manufacturers, as supply shortages continue to hamper output. Momentum loss from the second and third quarter was further confirmed in November with 52.8% growth. The rise in coronavirus cases and now a new variant named Omicron have impacted business sentiment in Germany which fell for the fifth month in a row in November. The Ifo Business Climate report declined to 96.5 points.

Stay informed with our real time comprehensive market analysis reports and financial news here.

86

Weekly Market Review by Anzo Capital

:calendar: Reflecting on the week of 29 Nov 2021

US Employers Struggle To Find Workers

U.S. jobs numbers disappointed last week, indicating that only 210,000 new jobs were added in November, against a forecast of 553,000. Staff shortages continue to be a persistent problem for companies looking to hire, which will likely result in upward wage pressures. The result, will be higher costs for customers. Professional and business services represented the majority of the gains with the transportation sector also enjoying a strong month of growth and job creation. The hardest hit sector was retail which lost jobs despite entering into the biggest shopping period of the year. The unemployment rate fell to 4.2% which was a positive surprise but is likely resulting from low labour market participation.

Stay informed with our real time comprehensive market analysis reports and financial news here.

87

Weekly Market Review by Anzo Capital

:calendar: Reflecting on the week of 03 Jan 2022

Fed Set To Pull The Trigger

Minutes from the December FOMC meeting revealed a change in stance, switching from an ultra easy policy approach to a quick readiness to use monetary policy tightening measures, such as interest rate increases. Projections suggest the first rate hike could come as early as May 2022. The change has been accelerated by higher-than-expected inflation numbers and the move towards a stabilisation in labour markets. The Fed also highlighted the need to reduce the balance sheet, which is expected to complement a rise in the Fed Funds rate and is projected to move at a faster pace than originally forecast. Labour shortages continue to plague the labour market with only 199,000 new jobs added for December against a forecasted 426,000. Employers are struggling to find staff and this will put upward pressure on wages further setting the tone for a rate increase from the Fed.

Stay informed with our real time comprehensive market analysis reports and financial news here.

88

Weekly Market Review by Anzo Capital

:calendar: Reflecting on the week of 10 Jan 2022

Growth Worries For US Economy

Cost of living pressures appear to be impacting U.S. consumers, as spiking inflation numbers resulted in a slump in retail sales. Sales saw the sharpest decline in 10 months, with 10 of the 13 components that make up the index falling during the month, thereby reflecting widescale weakness. Inflation spiked by 7% year-on-year in 2021, representing the sharpest increase in consumer prices since 1982. Shortages of goods and labour have resulted in rising prices and wages, which are then passed on to the customer. Given the spread of the Omicron variant, labour shortages are likely to persist, indicating price pressures will remain. There was an uptick in new unemployment benefit claims in the week ending 8th of January, as 230,000 claimants filed for jobless support, indicating that lay-offs may be rising amidst another surge in coronavirus cases.

Stay informed with our real time comprehensive market analysis reports and financial news here.

89

Weekly Market Review by Anzo Capital

:calendar: Reflecting on the week of 17 Jan 2022

China Growth Worries

China’s economic growth hit the slowest pace in 18 months during the last quarter of 2021. The slowdown was attributed to waning demand in the property sector, debt curbs and movement restriction policies in light of new covid-19 variants. For the quarter, 4% growth was achieved, with annual growth figures revealing a pace of 8.1% output. Domestic demand continues to weigh on growth, as retail sales registered a 1.7% year-on-year increase against a forecast of 3.8%. The drop in demand has been facilitated by lockdowns, however, with foreign demand remaining patchy, GDP figures may remain soft as we move through 2022.

Stay informed with our real time comprehensive market analysis reports and financial news here.

90

Weekly Market Review by Anzo Capital

:calendar: Reflecting on the week of 31 Jan 2022

US Economy Back On Track?

Despite a disappointing ADP payroll number, new job creation soared in January despite the backdrop of climbing covid-19 cases as a result of the new Omicron variant. A total of 450,000 new jobs were added to the US economy for the month with the leisure and hospitality sector leading the way as the largest contributor. Wages also accelerated by 5.68% year-on-year in January, likely boosted by another month of expansion in the Manufacturing sector where wages tend to be higher. The sector grew by 57.6% for the month of January with the employment index reaching 54.5%.

Stay informed with our real time comprehensive market analysis reports and financial news here.

91

Weekly Market Review by Anzo Capital

:calendar: Reflecting on the week of 07 Feb 2022

Place Your Bets Now

All bets are on for a March Fed Funds rate hike after CPI data indicated that inflationary pressures are still not transitory and are likely to persist. Core CPI numbers for January had prices rising at 0.6% month-on-month and 7.5% when compared with the same period last year, representing the sharpest rise in prices since 1982. Food prices, rents and energy represented the fastest growing components of the index. The US trade deficit widened to record levels in 2021 as a surge in imports of merchandise saw the deficit climb 26.9% as spending shifted from services to goods.

Stay informed with our real time comprehensive market analysis reports and financial news here.

92

Weekly Market Review by Anzo Capital

:calendar: Reflecting on the week of 14 Feb 2022

Spending Back On Track

US retail sales surged 3.8% in January surpassing estimates for a 2.1% rise and reversing the contraction of 2.5% in December. Rising consumer prices have attributed to the rise in sales value. Online shopping made up the bulk of the rise surging 14.7% for the month. FOMC meeting minutes reiterated the committee’s willingness to act on interest rates soon and to unwind the bond holding at a more aggressive rate. Inflation was also acknowledged as a concern especially across pandemic-effected sectors.

Stay informed with our real time comprehensive market analysis reports and financial news here.

93

Weekly Market Review by Anzo Capital

:calendar: Reflecting on the week of 21 Feb 2022

A New World Order?

Vladimir Putin’s threats towards Ukraine came to pass last week as a full-scale Russian invasion took place. Infantry, artillery and arial attacks have caused destruction and killed civilians. The war rages on, with spiking energy prices as a result of supply concerns, with major nations reliant on Russian gas. Gold saw an initial spike as investors attempted to hedge against a stock market plummet. Volatility will reign until some political stability is achieved in Ukraine. Given the unexpected resistance encountered in Ukraine, it could be a long, protracted war.

Despite the heavy end to the trading week, there are positive signs of recovery from pandemic conditions in major economies. If the conflict is contained, growth in major economies should continue.

Stay informed with our real time comprehensive market analysis reports and financial news here.

94

Weekly Market Review by Anzo Capital

:calendar: Reflecting on the week of 28 Feb 2022

US Is Full Steam Ahead

The U.S. labour market continues to tighten as the employment rate dips below 4%. Hiring in February far surpassed forecasts with 678,000 jobs created for the month; against a forecast of 423,000. The upward revisions to the two previous months mean that the U.S. economy is only 2 million jobs away from pre-pandemic employment levels. Employers still report a scarcity in workers which will likely put upward pressure on wages and lay the ground for a Fed interest rate hike in the near-term. Higher employment and rising household incomes will provide the Fed suitable evidence to raise rates despite the conflict in Ukraine.

Stay informed with our real time comprehensive market analysis reports and financial news here.

95

Weekly Market Review by Anzo Capital

:calendar: Reflecting on the week of 07 Mar 2022

Prices In U.S. Hit 40 Year High

Consumer prices in the U.S. hit a 40-year high to 7.9% year on year in February. An increase in demand coupled with persistent supply issues has caused inflation to sky rocket, with markets anticipating that CPI will peak at 9% this year. The Fed is expected to raise interest rates at the next F.O.M.C meeting with a forecast of 6 hikes this year, at 25 basis points. Unemployment claims ticked higher in the week ending 5th March to 227,000 new claims.

Stay informed with our real time comprehensive market analysis reports and financial news here.

99

LVMH Shares Hit 2023 Low as Slower Growth Impacts Luxury Sector

LVMH shares plunged to their lowest point this year on 11 October, prompted by a reported slowdown in revenue growth that fell below expectations. The stock declined by 6% at 11:58 a.m. London time, trading at 689.4 euros ($730.96), and dipped to 683.2 euros earlier in the session, marking its lowest level since 29 December 2022, based on LSEG data.

Numerous analysts adjusted their price targets for LVMH on the same day.

As a consequence, European luxury stocks experienced a broader downturn, with Christian Dior, led by Delphine Arnault, daughter of LVMH Chairman and CEO Bernard Arnault, declining by 5.25%.

Richemont, Burberry, Hugo Boss, Hermes, and Kering, which operate independently of LVMH and have yet to report for the quarter, observed similar trading losses.

Kathleen Brooks, founder of Minerva Analysis, acknowledged that changing dynamics within the luxury goods sector have impacted LVMH’s share price, making it challenging to match the extraordinary results of previous years.

She highlighted various economic and geopolitical threats occurring simultaneously, including China’s shift to a structurally slower growth pace and higher interest rates affecting U.S. demand for “affordable luxury.” Despite the luxury sector’s reputation for resilience to economic fluctuations, the elevated expectations and valuations from previous years may be impacting its performance. Russ Mould, Investment Director at AJ Bell, noted this development.

Not financial advice. Investment involves risk.
Source: TradingView, LVMH, CNBC, LSEG

#LVMH #CNBC #TradingView #Dior ##LSEG #DelphineArnault #Richemont #Burberry #HugoBoss #Hermes #Kering #luxury #USanzocapitalglobal #anzo #anzocapital #foreignexchange #fx #trends #finance #finances #investing #trading #traders #october

Reply

100

Navigating Market Volatility: Balancing Earnings and Geopolitical Tensions

NDX100 (17 Oct)
NDX100 (17 Oct)1080×1080 141 KB

Share Your Insights on the Upcoming Market Dynamics

As we dive into a week filled with corporate earnings, Wall Street futures are showing a positive trend. However, the Israel-Hamas conflict is casting a shadow of uncertainty over the market. We’re also keeping a keen eye on important economic data.

The escalating Israeli bombardments in Gaza are having a noticeable impact on investor sentiment. The key question is whether this geopolitical tension will dominate the landscape throughout the earnings season, or if the focus will shift as tech giants begin reporting their financial results.

Share your thoughts: What do you think the market will do in the upcoming weeks?
Let’s hear your predictions!

Not financial advice. Investment involves risk.
Source: TradingView, Reuters, Yahoo, CNN

#anzocapitalglobal #anzo #anzocapital #foreignexchange #fx #investing #trading #traders #october #tradethenews #wallstreetjournal #IsraelHamasConflict #GazaUnderAttack #technologytrends #marketforecasts #investoropinions

101

China’s BYD Forecasts Higher Third-Quarter Profit on Record EV Sales

BYD (18 Oct)
BYD (18 Oct)1080×1080 134 KB

Chinese automaker BYD Co. expects a substantial increase in third-quarter profit, with estimates indicating a rise of at least 67%. This growth is attributed to record sales of electric vehicles.

The company, backed by Warren Buffett and known for its electric vehicles and batteries, has projected a net profit for the quarter ranging from CNY 9.55 billion ($1.31 billion) to CNY 11.55 billion, up from CNY 5.72 billion in the same period the previous year, as stated in a stock exchange filing released late Tuesday.

Furthermore, for the first three quarters of the year, BYD is anticipating a profit increase from an estimated CNY 20.50 billion to CNY 22.50 billion, doubling the CNY 9.31 billion reported the previous year. BYD highlighted that sales of new-energy vehicles reached a new high, even amidst heightened competition in the automobile industry in the third quarter.

In addition to these gains, BYD announced earlier this month that its total vehicle sales nearly doubled during the January-September period, reaching 2.08 million vehicles. Subsidiary BYD Electronic also foresees its nine-month profit more than doubling, with expectations of reaching CNY 2.84 billion to CNY 3.12 billion, compared to CNY 1.24 billion from the previous year. The subsidiary attributed this growth to the expansion of its business with overseas customers and renewed demand from Android customers, among other factors.

Not financial advice. Investment involves risk.
Source: TradingView, MorningStar, Forbes

#BYD #EV #CNY #TradingView #Morningstar #news #China #anzocapitalglobal #anzo #anzocapital #foreignexchange #fx #trends #finance #finances #investing #trading #traders #october

102

New Zealand Dollar Hits Near 1-Year Low

NZDUSD (26 Oct)
NZDUSD (26 Oct)1080×1080 161 KB

The New Zealand dollar slid below $0.58, marking its lowest point in nearly a year. This decline was primarily driven by the strengthening US dollar and rising Treasury yields, supported by strong US economic data, which drove expectations of a more hawkish Federal Reserve monetary policy.

In addition to these factors, geopolitical risks in the Middle East and economic uncertainties in other major economies led traders to avoid riskier assets.

Furthermore, the Kiwi faced downward pressure due to a decrease in domestic inflation, which reduced the likelihood of another interest rate hike by the Reserve Bank of New Zealand. The country’s headline inflation rate dropped to a two-year low of 5.6% in the September quarter, marking the third consecutive quarterly slowdown following a cumulative 525 basis points of rate hikes since October 2021.

Not financial advice. Investment involves risk.
Source: TradingView

#NZDUSD #TradingView #NewZealandDollar #USDollar #ReserveBank #inflation #Kiwi #anzocapitalglobal #anzo #anzocapital #foreignexchange #fx #trends #finance #finances #investing #trading #traders #october

103

Navigating GBP/USD: Insights into Market Sentiment

GBPUSD (31 Oct)
GBPUSD (31 Oct)1080×1080 153 KB

The financial world is abuzz as the U.S. dollar strengthens in anticipation of the pivotal Federal Reserve meeting. Last week, the Dollar Index gained a solid 1%, and it’s currently trading at 106.445.

On one hand, the U.S. economy has displayed remarkable strength. Consumer spending in the U.S. surged in September, and the economy achieved its highest growth rate in nearly two years in the third quarter. However, traders are grappling with uncertainty about whether these positive indicators might signal an extended period of higher interest rates by the Federal Reserve.

Across the Atlantic, the Bank of England is preparing for its policy meeting. Despite looming recession concerns, the central bank is widely expected to maintain stable interest rates. In September, the UK’s inflation rate soared to 6.7%, the highest among major economies.

So, here’s the million-dollar question for GBP/USD traders: What’s your outlook for the GBP/USD market in the weeks ahead? Feel free to share your thoughts, predictions, and market insights with us!

Not financial advice. Investment involves risk.
Source: TradingView, Reuters

#TradingView #Reuters #GBPUSD #FederalReserve #inflationrate #anzo #anzocapital #foreignexchange #fx #trends #finance #finances #investing #trading #traders #october