The Weekly View 26th August, 2024
Welcome to the Unio Weekly View for the week beginning 26th August, our summary of markets and macro news.
Watch our investment brief for the week ahead:
This week is dominated by inflation data which includes releases from Australia, Germany, and the Eurozone on the 28th, 29th and 30th respectively. The Eurozone flash estimate for core inflation is forecasted to be 2.8% for August, compared to 5.3% this time last year. Any signs of a persistence in pricing pressures could limit the ECB’s ability to deliver further rate cuts this year.
In the US, the focus will be on the Fed’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, with July’s data released on the 30th. The day before the second estimate of GDP data for Q2 2024 will be released with the first estimate indicating the economic growth had accelerated to an annual rate of 2.8% in the second quarter, compared to 1.4% of first quarter.
Earnings season is winding down, however, a few high-profile companies are still scheduled to report their quarterly results this week. Nvidia, releasing on the 28th of August will be the main highlight, with investors looking to the chipmaker for an indication of the overall health of the AI boom. It will also be worth looking out for the performance of Salesforce and CrowdStrike (following the recent IT outage caused by one of their software updates) who both post results on the 28th.
Chart of the week
We will shortly be entering into the month of September, which from a stock market perspective has historically been the worst performing month of the year. This is often referred to as the September Effect and has been attributed to investors’ seasonal behavioural bias.
Unio Equities Chart
Unio Bonds Chart
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