Stocks Finish Higher. In the world of finance, staying updated on the latest market developments is crucial for investors and traders alike. Last week, the US stock market witnessed various events that impacted investor sentiment, including positive stock movements, fluctuating consumer credit data, and intriguing insights into the used vehicle market. Additionally, we’ll take a look at global currency trends and the notable inflation rate deceleration in Ukraine. To help you prepare for the upcoming week, we’ll also highlight key economic indicators on the horizon. Let’s dive in.
US Stocks Show Resilience
US stocks closed the week on a positive note as investors eagerly anticipated the August inflation report, which promises to shed light on the future trajectory of US interest rates. The Dow Jones gained 76 points, while the S&P 500 and Nasdaq each added 0.1%. Energy stocks saw significant gains, aligning with rising oil prices.
Major winners in this category included Marathon Petroleum (2.9%), Valero Energy (4.7%), and Phillips 66 (2.9%). Apple stocks rebounded, gaining 0.3%, following a recent dip of 6.2% due to concerns related to Chinese government workers’ iPhone usage restrictions. Additionally, Kroger surged by 3.1% after announcing the sale of 413 stores for $1.9 billion to C&S Wholesale Grocers.
However, on a weekly basis, the US stock market exhibited some downward trends. The Dow Jones experienced a 1% decline, while the S&P 500 and Nasdaq lost 1.5% and 2.1%, respectively.
Consumer Credit Trends
In July 2023, total consumer credit in the US increased by $10.4 billion, following a downwardly revised $14 billion growth in the previous month. This figure fell short of market expectations, which had anticipated a $16 billion rise. Revolving credit, including credit cards, saw a significant boost, increasing by $9.6 billion or 9.2% annually,. Contrasting with the previous month’s $872 million decrease. Non-revolving credit, typically comprising auto and student loans, increased by $773 million (0.2%), Following a downwardly revised $14.89 billion gain in the prior month.
Used Vehicle Market Insights
The Manheim Used Vehicle Value Index for the US experienced a modest 0.2% increase in August 2023. Marking the first rise in five months. This uptick aligns with the 0.3% average observed since 1997. Prices saw the most significant increase in vans (1.2%) and pickups (0.6%), while compact (-0.6%) and midsize cars (-0.5%) saw decreases.
Luxury and SUV prices increased slightly, each by 0.1% from the previous month. Year-on-year, used car prices recorded a 7.7% decrease, marking the 12th consecutive month of decline. According to Chris Frey, senior manager of Economic and Industry Insights for Cox Automotive, these trends are expected to remain stable in the coming months.
Global Currency Movement
In the foreign exchange market, the Russian Ruble emerged as the top gainer with a 0.59% increase, followed by the Canadian Dollar (0.39%) and the Norwegian Krone (0.37%). Conversely, the Chinese Yuan (-0.35%), Japanese Yen (-0.30%), and Turkish Lira (-0.24%) experienced losses.
Ukraine’s Inflation Rate
Ukraine’s annual inflation rate decelerated to 8.6% in August 2023 from 11.3% in July, returning to pre-war levels. While inflation remains high, there were notable decreases in various categories, including recreation & culture, household appliances, housing & utilities, health, and food & non-alcoholic beverages. Transportation inflation, on the other hand, accelerated. On a monthly basis, consumer prices declined by 1.4%, following a 0.6% drop in July.
Looking ahead to the upcoming week, various economic indicators will be in focus. In the United States, attention will be on GDP figures, the inflation rate, retail sales data, and the University of Michigan consumer confidence index. Meanwhile, the European Central Bank’s interest rate decision and Germany’s ZEW Economic Sentiment Index will be eagerly awaited.
In the United Kingdom, key data points include the unemployment rate, earnings data, GDP growth figures for July, industrial production, and foreign trade data. China will reveal important indicators such as industrial production, retail sales, unemployment rates, car sales, loan growth, and fixed asset investments. Additionally, Brazil and India will unveil their inflation rates, and Australia will release the NAB Business Confidence Index.
AUDNZD position closed with -0.53%:
ORCL – move Take Profit order up @124.34:
MIRM – move Take Profit order up @28.79:
KO – move Buy long order down @59.33:
AAPL – place Stop loss order @173.53:
Total loss of closed position – -0.33%,