Banque Bemo L : Daily Markets Brief

Daily Market Brief

March 12 2024

FOREIGN EXCHANGE MARKETS

(Sources: Bloomberg / Reuters)

EUR/USD

EUR/USD has bounced back following two consecutive days of losses, making gains and approaching the 1.0930 mark during Tuesday's Asian session. However, the pair encountered resistance amid a risk-averse atmosphere ahead of the release of the CPI data from the US. Tuesday's release of CPI data from Germany is likely to capture the attention of investors.

GBP/USD

The GBP/USD pair remains on the defensive above the 1.2800 support during the early Asian trading hours on Tuesday. The lower bets on rate cut expectations from the BoE weigh on the GBP. Investors await the UK labour market data and US CPI inflation data on Tuesday for fresh impetus. BoE's Mann said UK has a long way to go for inflation pressures to be consistent with the 2% target.

USD/JPY

USD/JPY kicked off the new week on the low side of the 147.00 handle, with the pair steeply off of March's early highs above 150.00. Markets are geared up for Tuesday's US CPI inflation print as investors continue to seek out signs the Fed Reserve could be pushed into early rate cuts if inflation eases off rapidly enough. Japan's Q4 GDP print early Monday missed the mark.

INTERNATIONAL EQUITY MARKETS

(Sources: Bloomberg / Reuters)

UNITED STATES OF AMERICA

The S&P 500 pulled back on Monday as the rally that brought the major averages to record highs cooled off. Information technology stock Super Micro Computer dropped more than 5%, while chipmaker Nvidia fell 2%. Both took a hit as investors question if stocks tied to artificial intelligence have more room to run after monster rallies. Those losses come as traders prepare for February's consumer price index due Tuesday.

EUROPE

European markets closed lower Monday, starting the new trading week on a negative note following declines in the Asia-Pacific region overnight. The Stoxx 600 index closed down 0.4%, with most sectors ending the session in negative territory.

ASIA

Japan stocks led losses in the Asia-Pacific region after the country averted a technical recession, paving the way for its central bank to raise rates. China recorded its first month of inflation after four months of deflation with the country's consumer price index climbing 0.7% year on year in February.

MUST READ

(Source: Bloomberg/ Forexlive)

Magnificent 7 Far From Peak Valuation

The ranks of Wall Street strategists playing down concerns around a bubble in US technology megacap stocks are growing. The team at JPMorgan Chase & Co. was the latest to flag that valuations of the seven tech giants that have powered the record-breaking rally on Wall Street are currently lower relative to the rest of the S&P 500 than the average of the past five years. "There is a concern over the very strong outperformance of the Magnificent 7, but we note that the group is currently trading less stretched than a few years ago, given earnings delivery," strategist Mislav Matejka wrote in a note. "This is not to say that the group is immune to profit disappointments ahead, but in the case of general earnings disappointment, these stocks could still hold out better than traditional cyclicals" reliant on strength in the economy, he said. Strategists at Goldman Sachs Group Inc. also said last week that while the US equity market's concentration is the highest in decades, the top stocks trade at much lower valuations than the largest names did at the peak of the tech bubble. The Magnificent Seven stocks had driven the biggest gains in the S&P 500 last year. The benchmark index has scaled all-time highs in 2024, but the performance of those mega-caps has diverged more recently. While AI darling Nvidia has soared to a record high, Apple shares entered a technical correction this month amid concerns about the firm's slumping iPhone sales and regulatory pressures.

Fx rates	Last	High	Low	% Daily	% Weekly	% YTD
GBP-USD	1.2817	1.2824	1.2805	0.02	0.88	0.68
USD-JPY	147.41	147.60	146.62	0.31	1.79	-4.32
USD-CHF	0.8769	0.8781	0.8767	-0.06	0.74	-4.05
Commodities	Last	High	Low	% Daily	% Weekly	% YTD
Gold	2174.42	2184.79	2173.77	-0.38	2.18	5.40
Silver	24.39	24.54	24.38	-0.34	3.02	2.48
Crude Oil	78.21	78.26	77.95	0.36	0.08	8.61
Bitcoin	72161.37	72767.01	71335.51	0.06	7.17	69.76
Etherium	4028.05	4092.34	4000.91	-0.12	3.95	76.49
Period		1 M	3 M			12 M
SOFR		5.32	5.31			4.94
Notes/Bonds		2 Y	10 Y			30 Y
US
BTP - BUND		0.56	1.33			1.79
GILTS		4.24	3.97			4.41
Index	Close	% Daily	% M	YTD	Futures	% Change
DJIA	38769.66	0.12	-0.07	2.87	38849.00	0.13
S&P	5117.94	-0.11	1.91	7.30	5140.50	0.35
Nasdaq	16019.27	-0.41	0.48	6.71	18070.25	0.55
DJ EuroStoxx50	4930.42	-0.62	3.88	9.05	4961.00	0.57
FTSE 100	7669.23	0.12	1.26	-0.83	7729.00	0.78
CAC 40	8019.73	-0.10	4.29	6.32	8025.00	N/A
DAX	17746.27	-0.38	4.16	5.94	17867.00	0.61
IBEX 35	10325.70	0.19	3.42	2.21	10331.90	N/A
FTSE MIB	33315.07	-0.27	5.91	9.76	33358.00	N/A
Nikkei	38797.51	-0.06	5.15	15.94	39600.00	#N/A N/A
Hang Seng	16587.57	2.78	8.27	0.01	17090.00	2.84
DFM General	4248.10	0.04	0.92	4.68	N/A	N/A
MSCI Tadawoul	12555.72	-0.50	2.11	4.92	N/A	N/A
	PRIOR_CLOSE_MID		CHG_PC CHG_PC CHG_PCT_
Leb. Mrkts	Closing Px	High	Low	% Daily	% Weekly	YTD
Solidere B	75.00	75.00	75.00	0.00	-1.12	-16.62
		MAIN WEEKLY EARNINGS
Company	Ticker	Market Cap	Date	Time	Estimate	Year Ago
Kohl's Corp	KSS US	$ 3.01B	12-Mar-24	Pre-mkt	1.29	-2.49
Veritone Inc	VERI US	$ 68.5M	12-Mar-24	Pre-mkt	-0.15	0.00
Dollar Tree Inc	DLTR US	$ 32.46B	13-Mar-24	Pre-mkt	2.65	2.04
Tilly's Inc	TLYS US	$ 216.7M	14-Mar-24	Aft-mkt	-0.21	0.01
Adobe Inc	ADBE US	$ 253.31B	14-Mar-24	Aft-mkt	4.38	3.80

ECONOMIC CALENDAR

(12-03-24) DE - CPI YoY / CPI MoM

(12-03-24) UK - Claimant Count Rate

(12-03-24) UK - Jobless Claims Change

(12-03-24) US - CPI MoM/ CPI YoY

(13-03-24) UK - Industrial Production MoM

(13-03-24) US - MBA Mortgage Applications

(14-03-24) US - PPI Final Demand MoM

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