A week of mixed earnings reports did not stop stock rally
Last Update: 27/12/2024
A week of mixed quarterly reports, particularly negative for the technology sector, did not stop the rally in the stock market, while on the interest rate front we note the differing views of the ECB board (rates up 75bps but some governors preferred a softer hike) and the less heavy-handed than expected decision by the Canadian central bank.
In the past week, 78% of the instruments and indices used for our analysis had a positive change. 21% experienced a negative change. This is the result of a trading week still characterized by the rally in equities, while upward movements are also recorded for the bond segment. Here the increasingly pronounced inversion of the rate curve in the U.S. and the recessionary winds over Europe are fueling the idea that the pivot is not that far off in time.
Analyzing by macroclass, 81 percent of equity instruments and indices had a positive weekly change. 100% of bond instruments and 50% of other asset classes used for our analysis.
Improving valuations in the past week were 43% of the total. The previous week, valuations that were upwardly adjusted were 41% of the total.
Among the analyses related to the equity sector, improving valuations were 42% of the total. A new analysis related to the size factor on the Italian stock market was activated this week.
Among analyses related to the bond segment, improving valuations were 75% of the total.
Among analyses related to other asset classes, improving valuations were 35% of the total.
The trend of improving valuations relative to the short-term average continues. In the week just ended, 53% of valuations are found to be above the short-term average. 39% turn out to be above the long-term average of valuations. Last week they were 46% and 39%, respectively.
