The AP on the Street 25th week of 2023
The AP on the Street 25th week of 2023
The last week was quite terrible; the indexes and commodities we usually cover were down really badly, with Silver and Russell 2000 being the most terribly affected.
Again, we have some FOMC members‘ speeches, the PCE Price Index, and the Core PCE Price Index this week. So, let’s take a look at what happened last week:
- People’s Bank of China decreased the interest rates by 10 basis points, making it 3.55%.
- Airbus announced the biggest evet plane order, 500 planes ordered by IndiGo.
- Elon Musk said that Tesla is looking forward to a significant investment in India.
- UK CPI rose 8.7% year on year —30 basis points higher than expected.
- UK Core CPI rose 7.1% year on year —30 basis points lower than expected.
- Federal Reserve Chairman Jerome Powell said that there is still a long way to go to lower inflation back to 2%, talking relatively hawkish compared to his previous speeches.
- Chairman Powell also said the pause is expected to be temporary.
- Chairman Powell also said that nearly all FOMC participants expect it will be appropriate to raise interest rates.
- Chairman Powell said that the US banks are very strongly capitalized.
- Chairman Powell said that Crypto assets appear to have stayed in power as an asset class. He also added that they see stablecoins as a form of money.
- Bitcoin passed the $30,000 mark.
- Tesla shares plunged, closing with one of the worst one-day drops.
- Meta CEO Mark Zuckerberg said that he is ready to fight Tesla CEO Elon Musk in a cage fight by posting a story with the invitation saying „Send Me Location.“
- Swiss National Bank hiked the interest rates by 25 basis points, making it 1.75% and signaling more hikes —rates are at the highest level since 2008.
- The Norges Bank hiked the interest rates by 50 basis points, making it 3.75% —25 basis points more than expected.
- Bank of England hiked the interest rates by 50 basis points, making it 5.00% —25 basis points more than expected.
- Central Bank of Turkey hiked the interest rates by 650 basis points, making it 15.00% —600 basis points less than expected. CBRT signaled more hikes in the future, saying that they are returning back to the „rational“ policies, ditching Erdogan’s infamous „interest rates create inflation“ theory that created a disaster in the Turkish economy and the Lira.
- Despite the rate hike, Turkish Lira hit an all-time low due to an anticipation of a more significant hike. Lira still has a substantial negative interest rate of more than -30%.
- Oil, Gold, and several commodities tumbled after interest rate hikes anticipations, and Powell’s hawkish speech fueled recession fears.
- Apple stock rose to a new all-time high.
- Chairman Powell said that a strong majority at the Federal Reserve expects two more rate hikes this year.
- Japan’s Core CPI rose 3.2% year on year —10 basis points lower than expected.
- Germany’s Manufacturing PMI came out as 41.0 points —2.5 points lower than expected.
- France’s Manufacturing PMI came out as 45.5 points —0.1 points higher than expected.
- France’s Service PMI came out as 48.0 points —4.0 points lower than expected.
- Euro Zone Manufacturing PMI came out as 43.6 points —1.2 points lower than expected.
- Euro Zone Service PMI came out as 52.4 points —2.5 points lower than expected.
- Wagner Group initiated a coup d’etat but later agreed with Putin and stopped.
- Wagner Group chief Prigozhing will leave Russia for Belarus, and criminal charges against him and soldiers that participated in the coup attempt will be dropped.
- US Manufacturing PMI came out as 46.3 points —2.2 points lower than expected.
- US Services PMI came out as 54.1 points —0.1 points higher than expected.
Overall Market Indexes & Commodities Moves (Weekly) (By taking the opening price on Monday and closing price on Friday, using MSN Money)
DOW = -2.0%
S&P 500 = -1.8%
NASDAQ = -2.0%
RUSSELL 2000 = -3.3%
Gold = -1.9%
Silver = -6.4%
Oil = -1.6%
The weekly performance of S&P 500 Stocks
Important data/ decisions that will be published next week:
FOMC members‘ speeches, the PCE Price Index, and the Core PCE Price Index
TIL: What is a „monthly dividend company“?
A monthly dividend company is a company that pays dividends to its shareholders every month. Some of the most famous examples of monthly dividend-paying stocks are real estate investment trusts (REITs) such as Realty Income (NYSE:O) which bills itself „The Monthly Dividend Company.“ Realty Income has even trademarked itself as the „Monthly Dividend Company,“ which shows its commitment to paying its shareholders.
We will see how the investors will behave after all of the data and decisions. Stay tuned.
DISCLAIMER: THIS TEXT CONTAINS NO INVESTMENT ADVICE.