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 action packed in terms of the Economic events calendar and turnover figures weren’t bad at all.
We had US jobs and inflation data along with interest rate decisions from the Bank of England, ECB and Japan.
Equiduct turnover was up towards €2.2billion for the week which was higher than expected for this time of year.
Madrid was comfortably clear as the most traded market again fuelled by the high volumes we’ve seen traded in BBVA throughout Q4.
BBVA was the most traded stock last week everyday bar Wednesday when ASML narrowly edged top spot.
Tuesday saw a spike in activity in weapons companies with more talk of a possible peace deal between the Ukraine and Russia.
This week …
Will be truncated by the Christmas holiday period.
We will be light on Economic events but the main question will be whether the Santa Claus Rally comes to town this year.
The Santa Claus Rally traditionally occurs over the last five days of December and the first two days of January trading.
During this period, markets have risen 80% of the time since 1950.
Markets were buoyed last week by better-than-expected US inflation data which pointed towards more interest rate cuts early in 2026.
Many analysts acknowledge however that much of this data was skewed by the recent US government shutdown and subsequent data blackout.
The forecast for the next couple of weeks therefore remains cloudy. A potential Santa Claus Rally and optimism around the latest economic data from the US is counterbalanced by ongoing fears around perceived overvaluation of the tech sector.
Is Santa Claus coming to town? Is it time to dump your tech stocks? A relatively quiet week is expected but what if somebody feeds their Mogwai after midnight? Market Gremlins could emerge at any moment. Have a great Christmas and a prosperous new year!
That’s all folks, until next week… Happy investing!
Carl
