The Weekly View, 2nd September 2024

Hello and welcome to the Unio Weekly View for the week beginning 02 September, our summary of markets and macro news.

In Summary

• Last week’s market movement was heavily influenced by the quarterly report of Nvidia, which grew revenue 122% QoQ but still missed some extremely high expectations set by Wall Street analysts. This week, another big beneficiary of the AI boom, Broadcom, will post its Q3 earnings on the 5th. The semiconductor and software product business has seen its stock price rise an impressive 75.8% over the last year and 44.5% YTD.
• On the macro side, the big news will come at the end of the week, when US unemployment and non-farm payroll data is released. Payroll growth has averaged 170k/month over the last quarter but the unemployment rate has still risen by 0.5% since the start of the year with the current unemployment rate standing at 4.3%.
• Prior to that, US manufacturing and services PMI data will be published on the 3rd and 5th respectively. The manufacturing index currently stands at 46.8 and is expected to rise to 47.8 whilst the services PMI is expected to rise to 51.5. On the 4th, the Bank of Canada is expected to cut interest rates by 25bps to 4.25%.

Chart of the Week

After recent market volatility and as we head into the September, which is historically the worst performing month for equities (known as the “September effect”), investors might be looking more closely at safe haven assets like gold. However, with a growing expectation of falling US interest rates, it has already seen a strong rally relative to USD over the last year.

Unio Equities Chart

Unio Bonds Charts

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