Fragile sentiment ahead of Nvidia earnings, Jackson Hole

Ipek Ozkardeskaya ipekScope

On Friday, a pause in the crude rally and encouraging data from Europe and the US gave support to equity indices. In Europe, despite soft services PMI reads across France and Germany, improved manufacturing numbers for August boosted appetite. In the US, the S&P 500 rebounded as well, on the back of strong PMI reads, as US crude’s spot price remained capped near the 100-DMA.

This morning, oil is weaker and the latter helps ease pressure on global yields, yet risk sentiment is dull. Technology companies kick off the week with heavy losses. In Korea, Samsung is down nearly 9% despite its latest shareholder return announcement. In Hong Kong, Alibaba free-dives nearly 10% as news that it will issue new equity to finance AI spending displeases investors, while in Japan, SoftBank slips nearly 4.5% after announcing plans to raise capital through a share sale as well.

As I said last week, with strong Q2 earnings already baked into prices, AI financing worries and political/geopolitical headlines are gently taking control of market action. Trade tensions are back in the headlines this morning following the US and Canada’s failure to reach a trade agreement, tensions in the Middle East continue to disrupt oil flows, and debt levels across the so-called developed world keep rising, with the US’$40 trillion debt now sitting like an elephant in the room.

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Author

Ipek Ozkardeskaya

ipekScope

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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