Anum Qudsia Siddiqui - KASB | KTrade

Stocks Take A Dip, NASDAQ focused on Tesla’s QER

Global stocks on Friday declined as investors looked to avoid “weekend risk”, mainly due to political tension. US, European and Asian stocks fell to a lower price, with only the Dow Jones holding onto gains. The Dow Jones outperformed other indices due to the quarterly earnings release from United Health Group and J.P. Morgan. Both companies saw earnings and revenue higher than Wall Street’s expectations. As a result, both stocks rose in value but are trading lower during this morning’s Asian session.

Investors this week will mainly focus on comments from the Federal Open Market Committee members. Statements, speeches and press conferences will guide the Fed’s intentions for the next two committee meetings and rate decisions. Investors continue to believe another interest rate hike is not likely, regardless of inflation reading higher than expectations. According to many members of the FOMC, higher bond yields have resulted in mortgage rates rising and are tackling inflation without a hike. The US inflation rate read 3.7%, rather than declining to 3.6%. However, economists had previously advised inflation to read a minimum of 3.8% for another interest rate hike to be seriously considered. The main concern for investors was the producer inflation rate, which read 0.5%, notably higher than expectations. This indicates inflation will be removed above the 2% target over the next three months.

Will High Job Numbers Pressure Stocks Further? Markets Wait

Market participants await the latest US employment data to determine how the Federal Reserve will alter its policy. According to the San Francisco Fed President, Mrs. Daly, a rate hike may not be necessary if the employment sector shows a slowdown. According to Mrs. Daly, if bond yields remain this high, the central bank may not be required to raise interest rates again but hold in the longer term. However, this will largely depend on the employment data, and if the employment data reads higher than expectations, bond yields are again likely to rise and pressure the stock market.

All three of the leading US indices ended the day lower and would have witnessed a poor session if the price did not retrace towards the end of the session. By the end of the day, US indices honored the set price range, as said in yesterday’s market analysis. The NASDAQ saw the most significant decline, falling 0.36%, the Dow Jones losing 0.05%, and the SNP500 0.13%. European indices are trading slightly lower during this morning’s Asian session but are improving as the cash open nears. Global institutions may potentially be avoiding US-based assets and opting for EU equities due to the upcoming Non-Farm Payroll data. However, the US employment data will influence both European and UK equities.

Economic Indicators – Your Guide to Informed Investing

Economic indicators are like a compass in the world of investing. They provide crucial insights into the country’s economy – just like we do. KTrade believes that investors should be empowered with the knowledge they need to make these decisions, so today we’ll delve into some key economic indicators and discuss how they can impact your investments.

Top Economic Events of This Week | October 2 – October 6 – 2023

Starting from Monday, we’re bracing for a string of potent economic revelations. On the roster are key indicators like the US ISM Manufacturing PMI, a vital measure of the manufacturing sector’s pulse, and the closely-watched JOLTS Job Openings that shine a light on the intricacies of the US labor market.

Midweek, the spotlight swings to the Eurozone with the Retail Sales m/m data, offering insights into consumer spending patterns, while the US ISM Non-Manufacturing PMI provides a broader look into the services sector.

The Green Pakistan Initiative: Upcoming Investment Opportunities

In recent years, Pakistan has been reshaping its economic landscape, shifting its focus from traditional sectors like real estate and construction towards more productive industries. The Green Pakistan Initiative is a groundbreaking effort under the newly formed Special Investment Facilitation Council (SIFC). This initiative not only presents a promising investment opportunity but also holds the key to making a profound social impact.

Several local business groups are gearing up to invest in corporate farming, and foreign investors, particularly from Saudi Arabia and China, have expressed strong support. So, what makes this initiative so appealing, and why is agriculture becoming the hottest theme in Pakistan’s economic landscape for the next five to ten years? Continue reading for an overview, or you can visit our Linkedin to view our whole report.

Top Economic Events of This Week | September 25 – September 29 – 2023

The upcoming week promises a series of impactful economic announcements starting from Tuesday. Key highlights include the US CB Consumer Confidence Index, fluctuating crude oil stock changes, and GDP figures from both the US and UK. Additionally, the EU’s inflationary pressures will be under scrutiny with the CPI release.

Each of these data points holds the potential to influence global market dynamics significantly.

EU, UK PMIs Tumble: US PMI Data in Focus

The EU and UK release largely negative Purchasing Managers’ Indexes, which has sent both currencies declining. In addition to this, PMI reports will also influence popular indices such as the NASDAQ. As the Pound and the Euro decline, the US Dollar Index has risen 0.22% during this morning’s trading sessions. The US Dollar Index, as a result, rose to a new weekly high before retracing. US bullish traders will now be turning their attention to further breakouts as well as this afternoon’s US PMI data. The best-performing currency over the past 24 hours has been the US Dollar, while the worst has been the Pound, Yen and Swiss Franc. The dovish decisions of the regional central banks have triggered the poor performance of these three currencies.

The Bank of England and the Swiss National Bank unexpectedly kept interest rates unchanged. The Bank of Japan kept interest rates intact but unexpectedly gave a relatively dovish forward guidance. The pair depreciated most over the past month is the GBP/USD, which has declined 3.80%. The GBP/USD is trading at the lowest price since March 2023.

NASDAQ Drops 1.93% as Central Banks Prep Rate Decisions

On Friday, the NASDAQ fell 1.93% and global stocks depreciated within the US Trading Session. Analysts are advising that the decline was brought about by institutions selling shares to avoid weekend risk as we enter into the week of significant bank decisions. Between Wednesday and Friday, four central banks will confirm their rate decisions. Market participants await the rate decision from the Federal Reserve, Bank of England, Swiss National Bank and Bank of Japan. Investors and shareholders are cautious that further global interest rate hikes will trigger higher lower demand for stocks. In addition, the more restrictive monetary policy will likely make a recession imminent.

A significant concern for the stock market is the price of energy-based commodities, which continues to rise this morning. The price of Crude Oil rose a further 0.81% during this morning’s Asian session and is now trading at the highest level since the first week of November 2022. Signs of an upcoming oil shortage support the instrument: according to OPEC+ reports, the global gap between supply and demand in the fourth quarter will be about 3.3M barrels per day.

What’s an IPO? Understanding Soya Supreme’s Latest Move.

In the world of finance, the term “IPO” often sparks excitement and curiosity among investors. But what is an IPO, and why is it such a significant event in the stock market? In this blog, we’ll delve into the world of Initial Public Offerings and explore their importance for stock traders. To illustrate this, we’ll take a closer look at the upcoming IPO of Soya Supreme, one of Pakistan’s largest cooking oil manufacturers.

IPO stands for Initial Public Offering. It’s the process through which a privately held company transforms into a publicly traded one. In simpler terms, an IPO marks the transition from being owned by a small group of private investors to allowing anyone with the financial means to become a shareholder in the company. If you want to stay updated regarding the Soya Supreme IPO, follow KTrade Securities on Linkedin.

Top Economic Events of This Week | September 11 – September 15 – 2023

From pivotal inflationary reports to key central bank decisions, the upcoming days are set to be a whirlwind of activity for investors, policymakers, and financial enthusiasts alike.

Among the headline events, we’ll be delving into the US CPI report, August’s Retail Sales, September’s preliminary Consumer Sentiment Index, the anticipated ECB Interest Rate Decision, and the GDP m/m announcement.