Market Rollercoaster: Bulls vs. Bears Showdown Unfolds!
Market Commentary
Based on our latest observations, the market last week exhibited a bearish sentiment with the S&P 500 (-2.31%) and Nasdaq 100 (-3.03%) both returning negative. Among the outperformers were Silver, DAX, NK225, STOXX50, CAC, Gold, DJI, AUD, EUR, and GBP, while the underperformers included CHF, ASX200, NZD, FTSE, JPY, CAD, HSI, CSI300, USD, Brent, and WTI.
In terms of treasury yields, the 13-week, 5-year, and 10-year treasuries all decreased compared to the yields from one week ago, while the 30-year treasury's yield slightly increased. This indicates a potential flight to safety and lower risk appetite among investors.
In terms of risk/reward ratios, NDX has the highest ratio of 1.87, followed by NK225 at 1.26 and Gold at 1.05. On the other hand, HSI exhibits the lowest risk/reward ratio of -0.05, followed by CSI300 at -0.33 and STI at -0.39. These ratios suggest different levels of risk and potential rewards for investors considering these securities.
When it comes to correlations, Gold stands out with a correlation of 0.21, indicating limited relationship with the movement of other securities. This suggests that Gold could potentially provide diversification benefits in a portfolio.
In global markets, Apple announced its support for RCS messaging on the iPhone, potentially benefiting Android users by improving messaging capabilities with iPhone users. Best Buy's Black Friday sale started, featuring deals on electronics including TVs and appliances. Rumors circulated about the upcoming release of the iPhone 16 and Apple's Vision Pro, along with possible delays and new features. Additionally, there were leadership changes and resignations in companies such as Cruise and OpenAI. Argentina elected Javier Milei, a far-right outsider, as its president, making him the world's first libertarian head of state.
Looking ahead, important economic data for next week includes Existing Home Sales, Initial Jobless Claims, Non-Defense Goods Orders ex Air, Durable Goods Orders ex Transp MoM, and Durable Goods Orders MoM. Any surprises in these data releases may cause market fluctuations and should be closely monitored.
In conclusion, last week's market was bearish, treasury yields were mixed, and different securities exhibited varying risk/reward ratios and correlations. Several significant events occurred in global markets, and upcoming economic data should be watched for potential market volatility.
Essential Charts
