Friday 13th’ Mission Accomplished (Daily Close)
The earnings season started strong on Friday with banks beating expectations but the initial sector’s rally quickly fizzled out, leaving JPMorgan down -3% and the banking sector with a loss of -1.7%. This aborted rally sapped sentiment for the rest of the day, leaving the S&P500 and Nasdaq nursing a loss of -0.3% and -0.4% respectively. As the old saying goes, if a stock does not rally on good news...then it must fall and that is what happened on Friday and the banking sector took the whole tape down with it.
It will be interesting to see the market response to the same expectation of good tech results. ETFs focusing on US equities attracted $9bn of fresh money over the past week, reversing a quarter of the outflows seen over the last two months, Bloomberg reported .
The stock markets finished hesitating on Friday to close lower after the State Department said it now had evidence that the Syrian government was behind the chemical attack, making a military strike all the more ikely. European shares outperformed, eking out some modest gains (Euro stoxx50 +0.1%). EM markets (stocks and currencies) underperformed but the dollar index was not really able to benefit, closing largely unchanged. Gold and Silver gained respectively +0.6% and 1%. Strikes against Syria were conducted late on Friday by the US, UK and France , vindicating earlier market concerns. The “mission accomplished” Presidential tweet issued on Saturday likely signaled this won’t be the beginning of a broader conflagration. China and Russia condemed the operation.
BentinPartner Advisers, Basel
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