Commentary:
Last week, global equities experienced a general decline both in developed and emerging markets (excluding Japan). In the US, stocks across all styles and sizes closed the week in red, except for the large-cap growth category. In terms of sectors, Technology and Industrials were the weakest performers, while Energy, Real Estate, and Utilities delivered the strongest gains.
Importantly, Charles Schwab maintained its sector outlook for June, naming Financials, Materials, and Energy as potential outperformers.
In fixed income markets, yield dynamics were mixed across maturities and geographies. In the US, shorter term treasury yields decreased, while yields on longer maturities increased slightly. Meanwhile, the yield on short-term German bund, a European benchmark, was largely unchanged, while yield on longer-term bunds increased. With regard to Fed expectations, markets are now pricing in only one or two 25bps rate cuts in 2024.
Lastly, out of last week’s 20 most traded stocks globally, analysts expect the best performers in next 12 months to be Schlumberger (SLB), Amazon.com (AMZN), and Intel (INTC), while Qualcomm (QOCM) stock price is expected to decline.
