What grabbed the headlines last week?<\/p>\n
\u00a0<\/p>\n
Wall Street was looking comfy, trotting higher as the rain came down on Saturday morning in Sydneham.<\/p>\n
The rainmaking of a weaker-than-expected jobs report saw a deluge of buying in the US Tech sector.<\/p>\n
In a timely display of maudlin activity, the US economy added but 175k jobs in April, a notable step down from March\u2019s 315k jobs.<\/p>\n
The counted number of unemployed Americans on the hock went higher to 3.9% from 3.8% while average hourly earnings eased to 3.9% YoY from 4.1%.<\/p>\n
This, I saw \u2013 in a a rosy looking headline somewhere around the Washington Post \u2013 is what they call a \u2018Goldilocks\u2019 jobs report.<\/p>\n
Suddenly the Americans are back in the interest rate market, pricing in a second 25bp Fed rate cut before year-end.<\/p>\n
For the week in New York, the Dow Jones gained 1.14%, the Nasdaq added 1%, and the S&P500 found 0.55%.<\/p>\n
Apple shares rose of course, after the iPhone trickster posted a year-over-year revenue decline in its fiscal Q2 earnings report after the bell on Thursday.<\/p>\n
This however, was a beat on gloomy Wall Street\u2019s expectations. The tech giant\u2019s sales fell 4.3% from the prior year, coming in at $90.75 billion. Analysts anticipated $90.01 billion. So. Boohoo.<\/p>\n
According to IG Markets\u2019 market analyst Tony Sycamore, Wall Street was encouraged by some fair earnings drops from the Mag 7 and by Fed Chair Powell\u2019s comments that unexpected labour market weakness could see the Fed cut\u00a0 earlier than thought.<\/p>\n
\u201cA 25bp rate cut has been pulled forward to September with a second 25bp rate cut priced for December,\u201d Tony says.<\/p>\n
\u201cWhile expectations of additional Fed rate cuts would typically be expected to boost regional global stock markets when they re-open this week, news over the weekend that Warren Buffet\u2019s Berkshire Hathaway has reduced its holding in Apple by about 13% and intends to continue increasing its cash holdings, will raise eyebrows given the Sage of Omaha\u2019s phenomenal track record.\u201d<\/p>\n
At home, the S&P\/ASX 200 (XJO) Index closed a rather woozy week of ups and downs some 0.7% for the better. Ultimately legged-up by the punching on Wall Street and the local good\/bad news of weaker-than-anticipated retail sales report for March, which tempered expectations around the possibility of another RBA rate hike.<\/p>\n
The home team\u2019s response to the muting of bond worries triggered buying in the rate-sensitive recover (see below).<\/p>\n
However, some of April\u2019s best-performing areas of the market encountered some profit-taking\u2026 and that was most definitely not local resources.<\/p>\n
The ASX200 finished 53 points (+0.70%) higher last week at 7629.<\/p>\n
Via Google<\/p>\n
Seven of the benchamrk\u2019s 11 sectors closed in the\u00a0 higher over the last week.<\/p>\n
The Real Estate and IT sectors did it best, ahead 3.14% and 2.31% over the past five sessions.<\/p>\n
Consumer Discretionary (2.14%) and Financial Sectors (+1.33%) also made strong moves.<\/p>\n
Via ASX<\/p>\n
The Consumer Staples (-2.28%), Energy (-1.81%), Materials (-0.30%) and Utilities (-0.20%) all ended the week in various negative shades of red<\/p>\n
Resources plays did some quiet rotating. It\u2019s out with gold stocks, in with uranium and hello again to the new metals producers.<\/p>\n
Uranium comeback kids incl:<\/p>\n
Silex Systems (ASX:SLX)<\/strong><\/a> +24.6%, Bannerman Energy (ASX:BMN)<\/strong><\/a> +22.8%, Deep Yellow (ASX:DYL)<\/strong><\/a> +18.5% and Paladin Energy (ASX:PDN)<\/strong><\/a> +17.8%.<\/p>\n And nu metals:<\/p>\n IGO (ASX:IGO)<\/strong><\/a> +11.4%, Pilbara Minerals (ASX:PLS)<\/strong><\/a> PLS) +10%, Mineral Resources (ASX:MIN)<\/strong><\/a> +9.4%, Liontown Resources (ASX:LTR)<\/strong><\/a> +9.4%, and Lynas (ASX:LYC)<\/strong><\/a> +6%.<\/p>\n In the States, this week\u2019s economic calendar is macro-lite, thank the largely AWOL God of Financial Journalists.<\/p>\n The main highlights will be a heavy week of market massaging Fedspeak sucking up investor attention from facts to policymaker feelings re: Federal Reserve\u2019s monetary stance.<\/p>\n The only other key indicators look like the prelim read of the Michigan Consumer Sentiment thingy and the usual paper bag sucking weekly jobless claims.<\/p>\n Brazil\u2019s central bank is expected to slash borrowing costs by another 50 basis points, bringing the benchmark Selic rate down to 10.25%. But they also have Madonna playing a free concert on a beach. <\/p>\n There\u2019s some interest in the S&P Global Services PMI.<\/p>\n The Bank of England is expected to keep monetary policy unchanged following a drop in the inflation rate to 3.2% in March, the lowest since September 2021.<\/p>\n The rate remains above the 2% target, but Governor Andrew Bailey is optimistic that British inflation is on track to meet the target.<\/p>\n The Poms will also be forced to dine out on preliminary UK Q1 GDP, business investment, foreign trade balance, industrial production, and construction output. My feeling is these will be complainy with some drizzle.<\/p>\n Across the channel, the trash await Europe\u2019s monetary policy meeting accounts and cash rate calls will pop for the perpetually angry Swedes and Poles.<\/p>\n Other upcoming data includes Euro Area retail sales, Germany and France balance of trade, Italy\u2019s industrial production and retail sales, Spain and Switzerland jobless rates.<\/p>\n In Istanbul, Turkey\u2019s industrial activity and unemployment rate should be gripping.<\/p>\n Mainly because the inflation rate there is of Weimar Republic proportions.<\/p>\n Turkish inflation in March accelerated to 68.50% from 67.07% in February. What\u2019s scary is that it\u2019s the highest since\u2026 just November 2022.<\/p>\n The central bank of Turkey left its key one-week repo auction rate steady at 50% two weeks ago, in line with market expectations, following an unexpected 500bps hike in March.<\/p>\n Yup. They raise in hundreds of bps.<\/p>\n Closer to home, China drops April trade figures \u2013 can a lift in overseas demand support domestic manufacturers amid pessimistic gauges for domestic consumers? I for one don\u2019t care.<\/p>\n The world\u2019s second largest economy, but biggest bummer of a government will also update its current account with first-quarter figures.<\/p>\n The central bank which lives on the edge \u2013 the Bank of Japan reveals its Summary of Opinions \u2013 like a statement on monetary policy (but sans any discernable policy) which currency traders will fret over considering the Japanese central bank\u2019s cray-cray policy positions so far this year and the potential smack these give the yen.<\/p>\n Japan will also release its balance of payments for March, set to unveil some of the impact of the yen\u2019s weakening.<\/p>\n At our place, the RBA is expected to hold its key interest rate unchanged on Tuesday at 2.30pm in Sydenham.<\/p>\n \u00a0<\/p>\n Yeah. This is still happening.<\/p>\n Notable US corporates on the block this week include Messrs Walt Disney, Twilio, Lyft, Uber, Airbnb, Robinhood, Roblox, Dropbox and Palantir.<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n MONDAY TUESDAY<\/strong> WEDNESDAY<\/strong> \u00a0<\/p>\n THURSDAY<\/strong> FRIDAY<\/strong> <\/span><\/p>\n The post Traders\u2019 Diary: Everything you need to get ready for the week ahead<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"The Week Ahead<\/h2>\n
US Earnings<\/h2>\n
The Economic Calendar<\/h2>\n
Monday May 6 \u2013 Friday May 10<\/strong><\/h2>\n
\nCN Caixin Services PMI
\nID GDP Growth Rate<\/p>\n
\nBR S&P Global Services PMI APR
\nUS Fed Barkin Speech
\nUS Fed Williams Speech
\nGB BRC Retail Sales Monitor YoY APR
\nJP Jibun Bank Services PMI Final APR
\nAU RBA Interest Rate Decision<\/strong><\/em>
\nAU RBA Press Conference<\/strong><\/em>
\nGE Balance of Trade MAR \/ Exports \/ Factory Orders MAR
\nGB Halifax House Price Index APR
\nFR Balance of Trade MAR
\nGB S&P Global Construction PMI APR
\nEA Retail Sales MoM MAR
\nMEX Consumer Confidence APR
\nBR Balance of Trade APR<\/p>\n
\nUS RCM\/TIPP Economic Optimism Index MAY
\nUS Fedspeak Kashkari
\nGER Bundesbank President Nagel Speech
\nUS API Crude Oil Stock Change MAY
\nGER Industrial Production MoM MAR
\nBR Retail Sales MoM<\/p>\n
\nUS EIA Gasoline Stocks Change MAY
\nUS Fedspeak Jefferson
\nUS 10-Year Note Auction
\nUS Fedspeak Cook
\nBR Interest Rate Decision
\nJP BoJ Summary of Opinions
\nCN Balance of Trade
\nCN Imports APR
\nGB BoE Interest Rate Decision
\nGB BoE Monetary Policy Report
\nGB MPC Meeting Minutes
\nGB BoE Gov Bailey Speech
\nMX Inflation Rate APR
\nUS Initial Jobless Claims<\/p>\n
\nJP Current Account MAR
\nGB GDP MAR
\nGB Goods Trade Balance MAR
\nGB Industrial Production
\nGB Manufacturing Production
\nTR Industrial Production
\nTR Unemployment Rate MAR
\nCN Current Account Prel Q1
\nEU ECB Monetary Policy Meeting Accounts
\nBR Inflation Rate
\nIN Industrial Production MAR
\nIN Manufacturing Production MAR<\/p>\n