Earnings Reports and Geopolitical Factors Shake Up Market Performance

Market Commentary

Based on our latest observations, last week's market performance showed a bearish sentiment, with the NDX and SPX underperforming with returns of -4.03% and -3.42% respectively. On the other hand, Silver and Gold were the outperformers, with returns of 3.28% and 3.2% respectively. In terms of treasury yields, all yields decreased compared to the previous week, with the 5-year Treasury having the largest decrease in yield percentage and the 13-week Treasury having the smallest decrease.

In terms of risk/reward ratio, Gold and CHF were noted to have the highest ratios, indicating higher potential returns for the same level of risk. Additionally, Gold and NK225 had the lowest average correlations with all other assets, suggesting potential diversification benefits.

Last week, major companies such as Amazon, Microsoft, Alphabet, Meta, Ford, and GM released their earnings reports, which had an impact on the stock market. Furthermore, Foxconn, the manufacturer of Apple products, is reportedly undergoing a tax audit and investigation in China. The ongoing hostage situations between Israel and Hamas also led to further attacks and casualties, while aid convoys tried to reach Gaza.

Looking ahead, next week's economic data that should be closely monitored include the S&P Global Services PMI Flash and S&P Global Manufacturing PMI Flash, Building Permits data, and GDP Price Index and Growth Rate. Any surprises in these data releases may cause market volatility.

In summary, last week's market performance showed a bearish sentiment with certain assets underperforming and others outperforming. Treasury yields decreased compared to the previous week. Gold and CHF had the highest risk/reward ratios, indicating higher potential returns for the same level of risk, while Gold and NK225 showed potential diversification benefits with low correlations to other assets. Major companies' earnings reports and geopolitical events also influenced market movements.

Essential Charts