Sign in
The S&P 500 hit another record high yesterday as traders looked past a US inflation report that saw prices rise faster than expected. Pundits don’t think the “last mile” surge of inflation will derail the US Federal Reserve’s plan to start trimming interest rates throughout the second half of the year.
Stock markets rallies make analysts believe a risk reset is around the corner: The world’s most prominent indices — S&P 500, Nasdaq, Japan’s Nikkei 225, Germany’s Dax, and others — have all notched record highs in recent weeks, cementing investors and analysts confidence and pushing some to let go of previously risk-averse approaches, the Financial Times writes.
“Everyone’s been anticipating a recession for a long time and it hasn’t materialized,”UBS Asset Management’s head of multi-asset strategy Evan Brown told the salmon-colored paper. “It’s like a reset of the risk cycle,” Brown added, pointing to previously risk-averse investors not jumping back into stocks. Driving investor confidence is the understanding that central banks across the world seem to have been able to reel back inflation without sparking an economic downtown — referred to by economists as the Goldilocks scenario.
Looking into the crystal ball: Goldman Sachs, UBS, and Bank of America (BofA) have all upgraded their year-end forecasts for the S&P 500, with BofA penciling in a 5% increase above current levels. Société Générale sees the Nasdaq 100’s earnings gaining 40% in 1H 2024, while Morgan Stanley expects pan-European indices to “keep rising like it’s 1995,” notching a 12% increase above current levels.
THE MARKETS THIS MORNING-
Asian markets are mixed in early trading today. Futures point to similarly mixed open for European shares later this morning, while US futures softened overnight after shares advanced yesterday.
|
ADX |
9,228 |
-0.0% (YTD: -3.7%) |
|
|
DFM |
4,252 |
+0.1% (YTD: +4.8%) |
|
|
Nasdaq Dubai UAE20 |
3,691 |
-0.0% (YTD: -3.9%) |
|
|
USD : AED CBUAE |
Buy 3.67 |
Sell 3.67 |
|
|
EIBOR |
5.1% o/n |
5.3% 1 yr |
|
|
TASI |
12,613 |
+0.5% (YTD: +5.4%) |
|
|
EGX30 |
32,661 |
-2.2% (YTD: +31.2%) |
|
|
S&P 500 |
5,175 |
+1.1% (YTD: +8.5%) |
|
|
FTSE 100 |
7,747 |
+1.0% (YTD: +0.2%) |
|
|
Euro Stoxx 50 |
4,983 |
+1.2% (YTD: +10.2%) |
|
|
Brent crude |
USD 81.92 |
-0.4% |
|
|
Natural gas (Nymex) |
USD 1.71 |
-0.5% |
|
|
Gold |
USD 2,158 |
0.0% |
|
|
BTC |
USD 71,370 |
-1.2% (YTD: +68.5%) |
THE CLOSING BELL-
The DFM rose 0.1% yesterday on turnover of AED 243.9 mn. The index is up 4.8% YTD.
In the green: Orascom Construction (+8.4%), Dubai Islamic Ins. and Reins. (+4.6%) and National Central Cooling (+4.3%).
In the red: Mashreq (-4.5%), Emaar Properties (-2.4%) and Islamic Arab Ins. (-1.9%).
Over on the ADX, the index stayed flat, on turnover of AED 935.7 mn. In Nasdaq Dubai, the index also stayed flat.
CORPORATE ACTIONS-
AI tech company Bayanat approved its legal name change to Space42, according to an ADX disclosure (pdf). The company will go by its new name after obtaining approval from relevant authorities on its merger with Yahsat.
