Equities seen steady ahead of a busy week

The major US equity indices inched ahead Friday, ending an otherwise quiet week with a gain, thanks to a handful of mega-cap companies that have pushed index benchmarks higher even as most of the market wallows in the doldrums. The mood was subdued last week. Equities have generally traded in a narrow range and volatility measures declined even as the broad S&P 500 Index formally pulled out of its recent bear market on Thursday, having risen 20% from its October 12 closing low. Meantime, European equity markets booked a weekly loss, with the Euro Stoxx 50 down 0.9% over the five-day stretch.   

Summary for 12.06.2023 

• Asian equity markets were mixed on Monday as caution dominated sentiment ahead of monetary policy meetings scheduled this week for the Federal Reserve, the European Central Bank and the Bank of Japan. Investors also assessed data showing Japanese producer prices rose 5.1% year-on-year in May, slowing for the fifth straight month to its lowest level in nearly two years amid easing global inflationary pressures. The Nikkei 225, Topix and Shenzhen Component indices advanced, while the Kospi, Shanghai Composite and Hang Seng indices declined. Meanwhile, Australian markets are closed for a holiday. 
• European and US equities are set to advance when the market opens on Monday as investors brace for the latest inflation data and central bank meetings this week. 
• Oil prices fell in Asian trade this morning, with the West Texas Intermediary (WTI) sinking back below $70 a barrel after Iran’s supreme leader said that the country was open to dealing with the West over its nuclear program, albeit with some caveats. Ayatollah Ali Khamenei said that a deal was possible if Iran’s nuclear infrastructure was kept intact.   
• Tesla powered ahead Friday, capping an 11-day rising steak, after General Motors announced it had reached a deal to start using the electric carmaker’s recharging network. Tesla previously signed a deal with Ford in May. Tesla was up about 5% on Friday and nearly 140% so far this year.  
• Adobe rose more than 4% on Friday after a Wells Fargo analyst upgraded the company’s shares to “overweight,” citing the company’s foray in artificial intelligence. Several other analysts also raised their price targets. 
• Netflix was up about 2.5% after a report that the streaming company added more new subscribers in a four-day period in late May than any other four-day period, suggesting its crackdown on password sharing is paying off. 
• Billionaire financier George Soros told the Wall Street Journal in an interview published on Sunday that he was handing control of his massive empire to his son, Alexander Soros.  
• This will be a busy week in the US, with the Fed interest rate decision, inflation rate, retail sales, and Michigan consumer sentiment taking the central stage. Investors will also closely follow the European Central Bank and Bank of Japan monetary policy meetings. Additionally, China will be releasing industrial production, retail sales, and fixed asset investment data. Other important releases include Germany’s ZEW Business Confidence, UK’s trade balance and GDP for April, and Australia’s consumer and business confidence as well as jobless rate.