Precious Metals Shine, Gaming Thrills, and Tech Power Plays Unveiled
Market Commentary
Based on our latest observations, last week Silver, Gold, Brent, NK225, and HSI were the outperformers in the market, with higher returns compared to the rest. On the other hand, NZD and AUD were the underperformers, with lower returns. The market seemed to be bearish as both SPX and NDX had negative returns.
In terms of Treasury yields, there has been a slight decrease across all maturities compared to one week ago, although the magnitude of the decrease varies.
Based on the latest risk/reward ratios, NDX, DAX, and CHF had the highest ratios, suggesting potentially higher returns for investors. On the other hand, HSI, CSI300, and USD had the lowest ratios, indicating lower potential returns.
Furthermore, the securities with the lowest correlations with other assets were Gold and NK225, implying potential diversification benefits for investors seeking to reduce overall portfolio risk.
In the global markets last week, there were various notable events. In the gaming world, there was excitement around the pre-release patch and official launch trailer for Marvel's Spider-Man 2 on PS5, as well as the reveal of Sandman in the game. Adobe unveiled its latest wearable tech innovation, dynamic clothing that can change at the push of a button. In the tech sector, benchmark restrictions were lifted for the Google Pixel 8 and Pixel 8 Pro, while Microsoft's acquisition of Activision Blizzard was completed after a two-year effort. Gas prices continued to drop, even in California, and affordable housing drew residents to Texas. Indigenous Australians called for a week of silence after a historic referendum failed to pass, and tensions escalated as Iran threatened retaliation over the Israel-Hamas conflict. In politics, the Polishop opposition won the election, seismic activity rocked Afghanistan, and discussions around a new House Speaker and impending invasion of Gaza dominated headlines. Mortal Kombat 1 revealed Omni-Man as a DLC fighter, and the Chevy Corvette received accolades as potentially the world's best sportscar. Finally, Caltech settled its Wi-Fi patent lawsuit against Apple and Broadcom, while Twitter faced allegations of illegally firing an employee who criticized Elon Musk's return-to-work plan.
Looking ahead, some of the upcoming economic data for next week that we should watch out for includes Retail Sales Ex Autos MoM, Manufacturing Production MoM, Capacity Utilization, Initial Jobless Claims, and the Philadelphia Fed Manufacturing Index. Any surprises towards the upside or downside may cause fluctuations, so these data should be monitored closely.
Essential Charts
