Twenty-three developed markets together lost an average of 0.6% this week. Fourteen marketsfell, including eight (Japan, Australia, Spain, Denmark, Italy, Portugal, Ireland, Singapore) by at least 1%. Of the eight markets that gained, the U.K. and Hong Kong gained the most, or 1.2% each.
Author: Kenley Scott
Kenley Scott is a senior equity analyst and sector strategist covering the APAC region and the Energy sector. He is a member of the Global Focus List Committee, which approves all equity recommendations for developed, emerging, and frontier markets. Kenley also writes the Global Sector Summary, part of the Sector Strategy service, which identifies emerging sector strength and weakness across 46 countries every week. After working as a commodities broker, Kenley joined the firm in July 2006. He has a B.S. in Statistics from the University of California, Riverside and also holds a Series 65 securities license.
Global Sector Strategy with Kenley Scott – August 4, 2016
Kenley Scott, lead sector strategist for O’Neil Equity Research, will give an overview of global market conditions and then focus on each market’s strength. In the US markets he will look at favorable sectors including healthcare and technology. In the developed and emerging markets he will highlight strength in Australia and India, respectively.
Nvidia: Visual Computing Leader
Founded in 1993 and headquartered in Santa Clara, CA, Nvidia is the world’s leading visual computing chip provider. Nvidia has transitioned from a graphics processor company serving the computing and gaming markets to a specialized platform company that targets four markets: Gaming, Professional Visualization, Data Center, and Automotive.
The Company reports revenue in two segments, Graphics Processor Unit (GPU) and Tegra Processor. Among other investment positives, the Company plays well into our Connected Cars, Artificial Intelligence and Virtual/Augmented reality themes. We are initiating coverage of Nvidia with an Interest List rating.
Global Markets Quiet, U.S. Earnings Improving
Twenty-three developed markets gained 0.2% on average this week. Thirteen markets advanced, including six (France, Germany, Australia, Denmark, New Zealand, Portugal) by at least 1%. Of the nine markets that fell, Norway, Singapore, and the Netherlands lost at least 1%.
Markets Mixed but Mostly Constructive
Twenty-three developed markets gained 0.8% on average this week. Twenty-one markets advanced, including seven (the U.K., Australia, New Zealand, Hong Kong, Finland, Belgium,Portugal) by at least 1%. Italy fell 0.2% and France lagged a bit, gaining just 0.1%.
All Markets Gain, Key Emerging Markets Near 52-Week Highs
Twenty-two developed markets rose 3.5% on average this week. All markets gained, including 13 by at least 3% and nine (Japan, France, Germany, Hong Kong, Spain, Italy, Finland, Austria, Ireland) by at least 4%. The U.K. and New Zealand gained the least, just under 1% each.
Consumer Cyclicals Improve as U.S. Market Tests Highs
Twenty-three developed markets lost 0.7% on average this week. Most fell sharply through Thursday before posting solid gains on Friday. Seventeen markets were down, including 12 by at least 1% and three (Japan, France, Ireland) by at least 2%. Of the five markets that gained, the U.S., Canada, New Zealand, and Israel gained 1.2–1.5% each.
Global Recovery, but Resistance Remains
Twenty-three developed markets gained 2.1% on average this week after four consecutive weeks of losses. Eighteen advanced, including seven by at least 1% and six
(U.S., France, New Zealand, Norway, Italy and Switzerland) by at least 3%. The best
performing markets were the U.K. (7.1%), Spain (5.0%), Japan (4.9%) and Singapore
(4.1%). Finland (-1.5%) and Sweden (-2.7%) were closed last Friday, resulting in
oversized losses on Monday.
Negative Brexit Impact Across All Markets in the Short-Term Friday Brexit Fallout
Friday losses were 5.5% across developed markets, worse than average losses of 3.2% across emerging markets. Further, the 19 European markets that traded (excluding Sweden and Finland which were on holiday), lost 6.4% on average on Friday, much worse than the 2.7% losses across the 23 non-European markets (excluding Israel and Egypt).
Broad-based Developed Market Declines
Twenty-three developed markets lost 2.8% on average this week, broadly falling for a third consecutive week. All markets fell, including 21 by at least 1%, 17 by at least 2%, and eight (Japan, Hong Kong, Denmark, Belgium, Finland, Netherlands, Ireland, Portugal) by at least 3%. Canada lost just 0.7%.
