Last week …
Was quieter than expected. We are now well into the summer season and volumes are noticeably lower.
Oil prices continued to rise and the US and Iran traded blows in the Middle East throughout the week.
The Nasdaq dropped over 4% whilst most European indices also finished in the red, including the IBEX 35, CAC40 and the DAX. The Stoxx 600 made a small gain.
Wednesday was the busiest day, partially fuelled by ASML releasing Q2 results. The chip maker turned over €25million and was our most traded stock. ASML continued to be busy for the rest of the week and was the second most traded stock on Equiduct behind Santander.
The tech sector was the main source of volatility with TSMC also releasing results and IBM dropping 25% in a single day after a disappointing preliminary second quarter update.
Several large US banks also announced results last week. These were largely positive but as this had been expected, it had limited impact on markets.
This week …
Should be busier although I also said that last week 😊
Unemployment and Inflation figures are due for the UK and we’ll get the latest update to the ZEW Economic Sentiment Index.
On Thursday we have an ECB interest rate decision although no change is expected after last month’s increase.
Q2 earnings season is now ramping up and Alphabet and Tesla announce results in the US on Wednesday. Some of Equiduct’s most traded stocks release results this week including Santander, Iberdrola, Total Energies, SAP and BNP. These results should be the main driver of volatility this week although developments in the Middle East could also impact markets at any time.
IBM caused ripples in the tech sector last week and despite more stella results from chipmakers ASML and TSMC, markets were unimpressed. There have been rotations away from the tech sector in recent weeks as fears remain regarding the extraordinary levels of spending on AI. It wont take much to spook investors so this Q2 earnings season will be particularly interesting.
This is the last weekly view for a couple of weeks as I depart on holiday next week. I expect Q2 results to continue to drive volatility along with the Middle East conflict and there is also the potential for some sort of breakthrough between Russia and Ukraine. Have a good summer.
That’s all from me, until next week… Happy investing!
Carl
