AXA Investment Managers’ Post

On Market View today: Implications of global tech outage on markets, CrowdStrike and Microsoft; US President Joe Biden drops out of presidential race, endorses Vice-President Kamala Harris; US Earnings preview: Alphabet, Tesla, Coca-Cola, LVMH; PBOC cuts key short-term policy rate; CapitaLand India Trust and OUE Singapore stocks started the day muted, after a choppy week in US and Europe markets ended with a global IT outage disrupting businesses worldwide. In early trade, the Straits Times Index (STI) headed down 0.02 per cent to 3,446.79 points after 75.8 million securities changed hands in the broader market. In terms of companies to watch, we have CapitaLand India Trust, after the trust today said it has completed its acquisition of an office building in Navi Mumbai, India, for about 6.8 billion rupees (S$110 million). Elsewhere, from the implications of the CrowdStrike-linked global tech outage to US President Joe Biden stepping down from the US presidential race – more international headlines remain in focus. Glad to unpack the developments with David Kuo, Co-founder, The Smart Investor. Many thanks to Mr Kuo for joining us on MONEY FM 89.3! Catch the podcast episode on Awedio, Apple podcast and Spotify at the links below. Podcast links: https://lnkd.in/g3cJx6JV https://lnkd.in/gxFQiZuk https://lnkd.in/gRGYG7un #singapore #sgx #sti #stockmarket #us #inflation #tightening #cooling #federalreserve #fed #interestrates #ratecut #september #technology #nasdaq #outage #crowdstrike #microsoft #uspresidentialelections #joebiden #donaldtrump #stepsdown #kamalaharris #endorsement #china #pboc #capitalandindiatrust #oue #earnings #alphabet #tesla #visa #lvmh #cocacola #spotify #generalmotors

Following President Biden's announcement not to seek re-election, Wall Street opened in the green. However, the decision has led to uncertainty and volatility in the financial markets. Despite this, the Dow Jones had a positive weekly performance due to its overexposure to defensive sectors. The tech sector struggled due to fewer outlets for semiconductors and profit-taking after a strong first half for tech giants. As we move into a busy week of economic data and corporate earnings, investors are keeping a close eye on key reports and major companies' quarterly results. Read the article: https://lnkd.in/gmNCkPPM

Given the recent volatility (especially in those mega all-star tech stocks), Fox Business host, Charles Payne, asked me my “biggest worries for the market and the economy”. My answers: 1) Lack of confidence in our market, economy & leadership 2) Dangerously elevated debt levels crushing an already drowning middle class 3) An external exogenic unexpected shock from the explosive international political landscape or even natural disasters 4) Higher taxes that hurt all the wrong people and proceeds being deployed wastefully 5) Pervasive inflation preventing the consumer from spending 6) Investors believing that they are “really brilliant & unbreakable” rather than understanding that their smart investment choices met-up with an incredibly golden equity 🐂 run. Charles Payne Unstoppable Prosperity - Charles Payne Fox Business Network NVIDIA #inflation #election #taxes

US Presidential Race Shifts: Investment Strategies Unveiled President Biden's exit from the presidential race reshapes the political landscape. As markets brace for increased volatility, our strategic focus remains on managing risk and enhancing returns. With a potential Fed monetary easing cycle in September, we're positioned to capitalize on growth recovery and a shift from tech stocks to cyclical sectors. This election could further US protectionism, especially with JD Vance as the Republican VP candidate, impacting both US and global markets significantly. Curious about how to navigate these changes? Reach out to receive our comprehensive report detailing these insights and more! #ElectionImpact #InvestmentStrategy #GetInformed

Political Rollercoaster: Markets Brace for Impact? Biden steps down, Trump's rhetoric heats up, and Harris emerges as a potential stabilizer. The US presidential race just got even more unpredictable! What does it mean for the world of finance? 💡 Geopolitical tensions spike, rattling global investors 💡 US Treasuries falter as a safe haven: 5 and 10-year yields up 6 bps each 💡 Tech sector on edge amidst global outages (reportedly linked to CrowdStrike) and whispers of new China trade wars 💡 NASDAQ 100 teetering on critical support levels - all eyes on Alphabet's results this Tuesday One can only wonder about the bigger picture: Is the US still the undisputed king of global investments? With a whopping 70% weighting in global equity markets and the Global Aggregate Index favoring dollar debt, it's time to question our exposure to US political volatility. As this political soap opera unfolds, the financial world holds its breath. #MarketVolatility #GlobalInvesting #USElection2024 #TechStocks #TheGlobalCIOOffice

In our latest #ViewsAtAGlance: 📈 Strong Q1 earnings from the US tech giants propelled global stock markets towards record highs in late May, led by chip designer NVIDIA. Since then, concerns about inflation and monetary policy have resurfaced, causing government bond yields to rise and equities to retreat. Trump's conviction could add to the uncertainty surrounding the US election. 🗳️ Betting markets see an ~80%+ probability of a Labour majority in the UK election. This outcome should come as no surprise to financial markets. UK equity markets are at a 20-year high with attractive valuations. Greater political stability after the election could attract investors back to UK markets, but it may take time to materialise. 🏘️ Chinese stocks have rebounded 9% this year. The government is setting up a RMB 300 billion fund to support the purchase of unsold property for use as social housing. The key question for investors is whether this initiative stabilizes property markets and leads to a sustainable improvement in consumer confidence. Find out more here: https://okt.to/5bQCTW When investing, your capital is at risk. #globaleconomy #wealthmanagement #marketviews Caspar Rock Grace Lavelle

What a difference a week or two makes! The attempted assassination on former President Trump, Biden’s exit from the US Presidential race, Biden endorsing Kamala Harris, China’s third plenum, CrowdStrike’s outage, and the 9% decline in the Philadelphia Semiconductor Index are just some of the key events causing recent market volatility. This effectively wiped off almost USD2 trillion in global market capitalisation within a week. We expect volatility in the market to remain as we head into the 4Q. Valuations are not expensive for the Singapore market and core holdings in defensive and domestically focused firms should help to provide a hedge against current global uncertainty. #OCBC #BankofSingapore #TheBusinessTimes

Having recovered to previous highs, markets were mostly flat to slightly down overall this week. Despite the surprise election call dominating our headlines, global markets were preoccupied with Nvidia’s corporate earnings and the US Federal Reserve meeting minutes. In fact, the FTSE 100 barely reacted to the election news at all, with global trends seen as more important for UK stocks than domestic politics. In part this is because little is expected to change. Read more in Tuesday's edition of our Monday digest: https://lnkd.in/e4AxbGtF

Monthly Insights: What we own and why. YTD returns. Valuations in tech. Lessons from the past. Levered balance sheets. Give it a read. #NVDA #MSFT #valuations #PEmultiple

In any given year, a multitude of factors can impact the return experienced by an investor in the U.S. equity market. Inevitably, every four years, the same question arises: “How will returns in the stock market this year be impacted by the presidential election?” The potential for change in policy stances can stoke volatility in the stock market, but the assumption that U.S. presidential election years are overtly negative for the domestic equity market is incorrect based on history. Read more in our latest #InsightfulAdvisor blog post from Daniel Dusina, CFA: