Equities rally as US data softens – Stock Markets
US stock indices reach new highs as chances of a Fed rate cut jump
Extra focus on US retailers’ earnings
Utility stocks record the strongest monthly rally since 2022
Could US car manufacturers benefit from the new EV tariffs?
US stock indices are enjoying strong gains so far in 2024 with the S&P 500 index leading the way with an 11% increase. However, European indices are outperforming their US counterparts with the DAX 40 index being around 13% higher this year. This is quite intriguing considering the evident economic divergence between the US and the euro area economies during 2024. Despite the recent positive signs, it is clear that the euro area is still lacking growth momentum compared to the US.
US retail sales slowingWednesday’s session also included a weaker set of US retail sales. The Fed is extremely interested in the strength of domestic demand, which is partly responsible for the recent stickiness in inflation figures. In the current earnings reporting period, Amazon saw a decent increase in sales revenues while Walmart revenues jumped by 6%. The remaining key retailers report over the next fortnight.
The consumer staples sector is one of the laggards of the US 500 index sectors in 2024, but it has been outperforming the consumer discretionary sector. This could reveal an increasing pressure from high inflation on households’ spending.
Utilities rally aggressively Drilling down the data and the S&P 500 utilities sector is recording a very strong rally during May, pushing its 2024 positive advance to around 14%. It is the best monthly performance for this sector since March 2022, benefiting from sizeable dividends, and it takes place despite the relatively elevated US treasury yields. This rally could be an early sign that investors are expecting the current soft patch in the US to become more entrenched over the next months, and consequently allow the Fed to possibly announce more than one rate cut in 2024.
Could US car manufacturers benefit from the new EV tariffs?The party campaigns for the November US elections are in full swing with the latest announcements from the US President Biden focusing on China. A new package of increased tariffs, which includes a 100% tariff of Chinese-made electric vehicles, comes as an answer to Trump’s intention to increase tariffs on all Chinese imports. President Biden’s aim is to protect US manufacturers with Tesla in need for a boost considering its underperformance against its main rivals.
Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
