The Week that Was<\/p>\n
Local markets ended last week on an unfamiliar high note, ignoring yet another meek misfit of a session in New York as they ended sharply lower and we ended Friday +0.2% higher.<\/p>\n
But for the week, the ASX 200 index was down -1%, adding further shame to a horror October\u2019s woeful performance.<\/p>\n
The fall so far this month is circa 3% with more sessions ahead of us.<\/p>\n
Over the five days, the miners, energy and utilities tried to help stem the losses.
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Via MarketIndex<\/p>\n
Wall Street traders sold and snapped up stocks willy-nilly as the tech rally ended and restarted once or thrice last week following hot and cold trading updates from a more motley Mega Tech crew.<\/p>\n
On the dance floor last week a rare choice of partners: Messrs Tesla (cold), Netflix (hot), Google (cold), Microsoft (hot), Meta (cold) and Amazon (hot). The tech earnings tango attracted fewer takers than you\u2019d expect.<\/p>\n
\u201cWhether Amazon\u2019s earnings report and Apple\u2019s report next week can stop the rot in the tech trade remains to be seen,\u201d according to IG Markets senior analyst Tony Sycamore.<\/p>\n
The interest rate issue is an even more significant headwind for Tech stocks, given their perceived \u2018long duration\u2019 status.<\/p>\n
The S&P 500 (SP500) crashed 2.5% last week after ending in the red four out of five times, joining the Nasdaq Composite in the dog house, officially entering index correction territory.<\/p>\n
Wall Street\u2019s retreat last week was inspired by mega tech but was in no way confined to the big end of town. Ten of the S&P\u2019s 11 sectors ended the week in the red.<\/p>\n
Defensive Utilities were the only winners. A lot like another index we all know and occasionally like:
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Market Index<\/p>\n
At home, the most interest rate-sensitive sectors like Property and IT led the declines.
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Also stressing traders last week, US GDP. It gained a stonking 4.9% for the September quarter, up from 2.1% in the last quarter.<\/p>\n
Via Barclay\u2019s<\/p>\n
Now we face the Fed\u2019s new truth with the American central bank\u2019s interest rate decision.<\/p>\n
Then the Fed and Friends got data galore to consider how their decision looks.<\/p>\n
Lots of jobs data \u2013 JOLTs job ppenings, some factory orders, the ISM Manufacturing and then Services PMIs.<\/p>\n
Q3 earnings reports from more of mega-major companies like Apple, Advanced Micro Devices, Airbnb, Caterpillar, Qualcomm, Eli Lilly, and Pfizer are set to drop.<\/p>\n
McDonald\u2019s starts us off tonight.<\/p>\n
And it will be a busy week by olde European standards too.<\/p>\n
Preliminary GDP growth figures for France and Italy and inflation for Germany, France, Italy and Spain are due.<\/p>\n
EU inflation is expected to have slowed right down in October. EU GDP probably contracted 0.1% over Q3 according to a Reuters poll following two quarters of sluggish economic expansion of 0.1%.<\/p>\n
In Germany, where the economy is having a very unGerman run, GDP likely contracted -0.3%, which would mark a Deutsch No 4 for consecutive GDP failures.<\/p>\n
We\u2019ll know kore after this week \u2013 German unemployment, retail sales and trade data drop; the Swedes drop GDP growth as well, while the Swiss and the Old Turks share new inflation data.<\/p>\n
In the UK, all eyes will be on the Bank of England monetary policy decision, with the central bank set to keep interest rates steady once again, and investors will be closely examining any clues regarding their plans for the remainder of the year. Mortgage and credit indicators are also due.<\/p>\n
Around the planet, central bank interest rate calls are also due for Japan and Brazil.<\/p>\n
The BoJ\u2019s interest rate decision, as a series of unscheduled JGB purchases prompted the possibility of another tweak to the central bank\u2019s yield-curve-control policy. Japan will also update its unemployment rate, industrial growth, and retail sales figures.<\/p>\n
Inflation rates are due in the Euro Area, Germany, France, Italy, Spain, South Korea and Indonesia.<\/p>\n
New PMI data is expected to show that China\u2019s manufacturing sector continued to expand in October, extending the momentum of optimistic responses to economic stimulus from Beijing despite the headwinds from hell out of China\u2019s debt-drenched property market.<\/p>\n
Across Asia there\u2019s fresh PMI data expected from India, South Korea, Singapore, Indonesia, the Philippines, Thailand, and Malaysia. Also, third-quarter GDP figures are incoming from Saudi Arabia, Taiwan, and Hong Kong.<\/p>\n
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The economic data flow in Australia and globally sharply picks up next week, CBA says.<\/p>\n
First up, we get the monthly housing drops.<\/p>\n
\u201cHome prices are likely to have increased by 1.0% in October. We also forecast building approvals lifted a little and new housing lending to have stepped up a touch in September. Goods trade balance figures should show a broadly unchanged outcome in September. And private sector credit growth is anticipated to have remained unchanged,\u201d the bank\u2019s economic team says.<\/p>\n
CBA says our biggest release this week is retail trade.<\/p>\n
\u201cThe RBA is keeping a close eye on how consumer spending is faring. Our internal data suggests nominal retail trade rose solidly in September. An expected easing in retail price inflation, primarily driven by softening food and household goods inflation, should mean that retail trade volumes improved to a flat outcome in Q3 23 after a 0.5%\/qtr decline in Q2 23.<\/p>\n
\u201cThat said, retail spending on a per capita basis declined further given the strength in recent population growth.\u201d<\/p>\n
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Source: Commsec, Trading Economics, S&P Global Research, AMP\u00a0<\/strong><\/em><\/p>\n \u00a0<\/p>\n MONDAY<\/strong> TUESDAY<\/strong> WEDNESDAY<\/strong> THURSDAY<\/strong> FRIDAY<\/strong> MONDAY<\/strong><\/p>\n Medlab Clinical (ASX:MDC)<\/strong><\/a> Half Year 2023 Earnings<\/p>\n Pivotal Systems Corporation (ASX:PVS)<\/strong><\/a> Q3 2023 Earnings<\/p>\n Challenger Exploration (ASX:CEL)<\/strong><\/a> Full Year 2023 Earnings<\/p>\n GCX Metals (ASX:GCX)<\/strong><\/a> Q1 2024 Earnings<\/p>\n Sezzle (ASX:SZL)<\/strong><\/a> Q3 2023 Earnings<\/p>\n Wellfully (ASX:WFL)<\/strong><\/a> Q3 2023 Earnings<\/p>\n TUESDAY<\/strong><\/p>\n Doctor Care Anywhere Group PLC (ASX:DOC)<\/strong><\/a> Q3 2023 Earnings<\/p>\n Australian Potash (ASX:APC)<\/strong><\/a> Full Year 2023 Earnings<\/p>\n Macquarie Group (ASX:MQG)<\/strong><\/a> Half Year 2024 Earnings<\/p>\n Design Milk Co (ASX:DMC)<\/strong><\/a> Q1 2024 Earnings<\/p>\n Happy Valley Nutrition (ASX:HVM)<\/strong><\/a> Full Year 2023 Earnings<\/p>\n WEDNESDAY<\/strong><\/p>\n Atrum Coal (ASX:ATU)<\/strong><\/a> Half Year 2023 Earnings<\/p>\n A1 Investments & Resources Ltd Full Year 2023 Earnings<\/p>\n CSR (ASX:CSR)<\/strong><\/a> Half Year 2024 Earnings Call<\/p>\n Thomson Resources (ASX:TMZ)<\/strong><\/a> Full Year 2023 Earnings<\/p>\n THURSDAY<\/strong><\/p>\n CSR (ASX:CSR)<\/strong><\/a><\/p>\n FRIDAY<\/strong><\/p>\n Macquarie Group (ASX:MQG)<\/strong><\/a> Half Year 2024 Earnings Call<\/p>\n \u00a0<\/p>\n MONDAY<\/strong> TUESDAY<\/strong> South Korea Industrial Production and Retail Sales (Sep) WEDNESDAY<\/strong> THURSDAY<\/strong> FRIDAY<\/strong> \u00a0<\/p>\n \u00a0<\/p>\n MONDAY \u2013 <\/strong>McDonald\u2019s (MCD), Pinterest (PINS), and SoFi Technologies (SOFI).<\/p>\n TUESDAY \u2013 <\/strong>Amgen (AMGN), Caesars Entertainment (CZR), Caterpillar (CAT), First Solar (FSLR), Pfizer (PFE), JetBlue Airways (JBLU), Advanced Micro Devices (AMD).<\/p>\n WEDNESDAY<\/strong> \u2013 Est\u00e9e Lauder (EL), Humana (HUM), Qualcomm (QCOM), Yum! Brands (YUM), Airbnb (ABNB), PayPal (PYPL).<\/p>\n THURSDAY<\/strong> \u2013 Apple (AAPL), Moderna (MRNA), Palantir Technologies (PLTR), Starbucks (SBUX), Paramount Global (PARA), DraftKings (DKNG).<\/p>\n FRIDAY<\/strong> \u2013 Dominion Energy (D), Fluor (FLR).<\/p>\n <\/span><\/p>\n The post Traders\u2019 Diary: The last days of disco as big tech and high rates march on November<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"
\nAustralia Retail Sales SEP<\/p>\n
\nRBAspeak: Jones (not Eddie)
\nHousing Credit MoM SEP<\/p>\n
\nAi Group Industry Index OCT
\nJudo Bank Manufacturing PMI Final OCT
\nBuilding Permits MoM<\/p>\n
\nBalance of Trade SEP
\nHome Loans MoM SEP
\nInvestment Lending for Homes Sep<\/p>\n
\nJudo Bank Services PMI Final
\nRBA Jones Speech
\n\u00a0<\/p>\nASX EARNINGS THIS WEEK<\/h2>\n
The Everyone Else Economic Calendar<\/h2>\n
Monday October 23 \u2013 Friday October \u2013 27<\/strong><\/h2>\n
\nUnited Kingdom Mortgage Lending and Approval (Sep)
\nEurozone Consumer Confidence (Oct, final)
\nGermany Inflation (Oct, prelim)<\/p>\n
\nChina (Mainland) NBS PMI (Oct)<\/p>\n
\nJapan Unemployment Rate (Sep)
\nJapan Industrial Production and Retail Sales (Sep, prelim)
\nJapan BOJ Interest Rate Decision
\nJapan Consumer Confidence (Oct)
\nFrance Q3 GDP and Inflation (Oct, prelim)
\nGermany GDP (Q3, flash)
\nTaiwan GDP (Q3)
\nHong Kong SAR GDP (Q3, advance)
\nEurozone GDP (Q3, flash)
\nEurozone Inflation (Oct, flash)
\nUnited States House Price Index (Aug)
\nUnited States CB Consumer Confidence (Oct)<\/p>\n
\nWorldwide Manufacturing PMIs, incl. global PMI
\nSouth Korea Trade (Oct)
\nIndonesia Inflation (Oct)
\nUnited States ADP Employment (Oct)
\nUnited States ISM Manufacturing PMI (Oct)
\nUnited States JOLTs Job Openings (Sep)
\nUnited States Fed Interest Rate Decision
\nBrazil BCB Interest Rate Decision<\/p>\n
\nSouth Korea Inflation (Oct)
\nHong Kong SAR HKMA Interest Rate Decision
\nMalaysia BNM Interest Rate Decision
\nUnited Kingdom BOE Interest Rate Decision
\nUnited States Factory Orders (Sep)<\/p>\n
\nJapan Market Holiday
\nWorldwide Services, Composite PMIs, inc. global PMI
\nGermany Trade (Sep)
\nTurkey Inflation (Oct)
\nEurozone Unemployment (Sep)
\nCanada Unemployment (Sep)
\nUnited States Non-Farm Payrolls, Unemployment Rate, Average Hourly Earnings (Oct)
\nUnited States ISM Services PMI (Oct)<\/p>\nUS EARNINGS THIS WEEK<\/h2>\n