📰 What’s moving Markets?

Stocks:

• Shares in Asia trade higher as do US and European futures

• Nvidia's shares surged by 6.6% postmarket following CEO's assurance of increased chip production to meet demand. Positive revenue forecast attributed to strong AI demand.

• Wall Street rallies as lackluster economic data suggests potential Fed pause on rate hikes, boosting technology and media stocks. S&P 500 gains 1.1%, Nasdaq Composite up 1.6%.

• Nvidia's blockbuster earnings contribute to the rise of AI-related stocks. Nvidia's shares are up over 200% this year, fostering the rally in AI tech stocks.

Bonds:

• US 10-year Treasury yields moderate, reaching 4.20% after earlier hitting a 16-year high. Two-year US Treasury yield falls to 4.97%.

• Soft economic data, including S&P Global's US Composite PMI declining to 50.4, suggesting potential central bank consideration for looser monetary policy.

• Market focus on the Jackson Hole Symposium over the next couple of days for insights into the Fed's approach to future monetary tightening.

FX/Crypto:

• Dollar index experiences a slight dip of 0.03% after reaching a two-month high of 103.4 against major currencies.

• Yen recovers to 144.66, bouncing from a nine-month low of 145.34, amid discussions of Japan's intervention in currency markets.

• The crypto market remains stable without significant movement, influenced by broader economic trends and central bank decisions.

Commodities:

• Brent crude slips to $83.01 per barrel, while US crude stands at $78.65, reflecting fluctuations in oil prices due to economic factors.

• Gold sees a slight increase, with spot gold trading at $1,918.89 per ounce, reflecting ongoing economic uncertainties.

📊 Chart of the Day

The chart below shows the average number of times the markets correct 3%, 5%, 10%, 15% and 20% a year. The markets normally drop 5% three times a year. We are currently experiencing the second 5% drop this year.

Average number and intensity of S&P 500 drawdowns a year

🤿 Deep Dive

Blackrock, which manages $9tn in assets, plays an important role voting in company shareholder meetings. It was recently revealed that they only supported 7% shareholder proposals on ESG issues over the last year.

If you’re pressed for time, here’s the TL;DR:

• BlackRock's support for environmental and social shareholder proposals drops due to corporate progress and poorly designed measures.

• The asset manager, controlling $9.4 trillion, backed just 7% of 399 such proposals, down from 22% and 47% in prior years.

• BlackRock maintains an 89% director support rate, noting boards' progress in reducing directors serving multiple companies.

• Rising non-binding resolutions signal growing investor interest in emissions reduction and diversity, driven by relaxed US ballot access rules.

📆 Coming up this Week

Monday 21st August

• German PPI (YoY) consensus: -5.1%, last: 0.1%, actual: -6.0%

Company earnings (EPS): Zoom (beat)

Tuesday 22nd August

• Australia Manufacturing PMI consensus: 49.6, last: 49.6, actual: 49.4

• Japan Manufacturing PMI consensus: 49.5, last: 49.6, actual: 49.7

Company earnings (EPS): Lowe’s (beat), Baidu (beat)

Wednesday 23rd August

• France Manufacturing PMI consensus: 45.2, last: 45.1, actual: 46.4

• Germany Manufacturing PMI consensus: 38.6, last: 38.8, actual: 39.1

• Eurozone Manufacturing PMI consensus: 42.4, last: 42.7, actual: 43.7

• Canada Retail Sales (MoM) consensus: 0.0%, last: 0.2%, actual: 0.1%

• United States S&P Global US Manufacturing PMI consensus: 49.4, last: 49.0, actual: 47.0

• Euro Zone Consumer Confidence consensus: -14.0, last: -15.1, actual: -16.0

Company earnings (EPS): Nvidia (beat), Analog Devices (miss), Snowflake (beat)

Thursday 24th August

• United Kingdom GfK Consumer Confidence consensus: -29, last: -30

• Japan Tokyo Core CPI (YoY) consensus: 2.9%, last: 3.0%

• Japan Tokyo CPI (YoY) consensus: 3.0%, last: 3.2%

Company earnings: Intuit

Friday 25th August

• German GDP (YoY) consensus: -0.2%, last: -0.2%