Hi, my name is Carl Rogan and every Monday morning I will be bringing you my views of what happened during the previous week and what to look out for in the coming week.
My views are my own and they do not constitute investment advice. My views are derived from Equiduct’s unique data set which represents a clean retail signal free of distortion from institutional investors and therefore are telling of what the sentiment of European retail investors is.
Without further ado, let’s dive right into it!
Last week …
Was light on major economic news but still saw high levels of turnover as November got off to a solid start.
It was a bearish week for European markets with the Stoxx 600 recording its biggest two-week loss since September.
Uncertainty about high stock valuations, particularly in tech stocks which saw a sell off over the week, along with the uncertainty caused by the ongoing US government shutdown, were seen as the prime causes.
The Bank of England kept interest rates unchanged but only by 5 votes to 4, suggesting a December cut could be on the way.
In the US Elon Musk was smiling as he was awarded the biggest corporate pay package in history, potentially worth a trillion dollars in stock!
Equiduct turned over €2.3billion last week, mainly fuelled by the Spanish market which occupied top spot every day of the week.
Madrid turned over just short of a billion which was 42% of Equiduct turnover.
BBVA was the most traded stock of the week, narrowly beating Telefonica who announced Q3 results on Tuesday morning and were consequently our most traded stock on Tuesday and Wednesday.
This week …
Looks like a quieter week on paper with highlights being UK GDP figures, an update to the German ZEW index and potential US inflation numbers.
It is a public holiday in Madrid on Monday so the Spanish market is likely to be quieter.
A new US government shutdown record was set last week as it passed the previous 35 day record set during Donald Trump’s first term.
This is causing quite a headache for investors who are, to quote Jerome Powell “driving in the fog”. Without official government data it is increasingly difficult to have confidence in the health of the US economy.
If a resolution is reached this week I’d expect to see a boost in stock market activity.
Q3 results season is coming to an end now but we still have a few stragglers due to announce this week, including Bayer and a number of companies towards the bottom end of our top 100 traded stocks.
Will the tech sell off continue this week? It’s an interesting question as there is still huge uncertainty over how big the benefits of AI will actually be.
We could be on the verge of a crash to rival the dotcom crash of the 90s OR, major breakthroughs could be just around the corner and in years to come people will look back at today’s stock prices and lament how cheap they were.
That’s all folks, until next week… Happy investing!
Carl
