Last week, the American markets closed slightly higher on the final trading day. Democratic presidential candidate Kamala Harris unveiled her economic plan for the country in the event she wins the presidential election in November. She aims to lower taxes for most Americans, ban overpricing on food, and provide affordable housing. Harris proposed a plan to offer $25,000 in support to first-time home buyers in the housing market. The S&P 500 rose by 0.2 percent, the Nasdaq Composite strengthened by the same amount, and the Dow Jones Industrial Average traded up by 0.2 percent.
Commodities traded in different directions on Friday. Despite a report from commodity trading company Trafigura estimating that oil tankers have increased their oil consumption by 500,000 barrels per day this year, the price of oil fell. The decrease is due to oil tankers traveling longer distances to avoid passing through the Red Sea. The number of active oil rigs in the US fell last week from 485 to 483. WTI crude oil declined by $1.5 to a price of $76.7 per barrel, while Brent crude oil decreased by $1.4 to a price of $79.7 per barrel.
Among base metals, there were mostly increases. Nickel saw the biggest gain, climbing by 0.8 percent. Aluminum advanced by 0.5 percent, while copper strengthened by 0.4 percent. Lead increased by 0.3 percent, while tin and zinc retreated by 0.3 and 0.5 percent, respectively. The price of gold rose by $43.8 to $2,499.6 per ounce.
At individual companies on the American exchanges, space rocket company Rocket Lab was the big winner on Friday. The stock surged by 12.5 percent after the company sent two spacecraft to Florida for launch. The rockets are headed to Mars. Vehicle manufacturer Ford rose by 0.5 percent despite the company announcing a recall of 85,000 Explorer model cars due to the risk of engine fires. Credit card giant Mastercard dropped by 0.4 percent after announcing plans to lay off approximately 3 percent of its workforce as part of a corporate restructuring.
The yield on the 10-year US Treasury bond climbed 1 basis point to 3.91 percent.
Asian markets are trading mixed at the start of Monday morning. At 07:30, the Japanese Nikkei 225 is down by 1.8 percent, the Hang Seng is trading 0.8 percent higher, and the Shanghai Composite Index is up by 0.4 percent.
Locally, new price targets have been released this morning. Morgan Stanley raised the price target for Assa Abloy to 304 kronor (previously 298) and reiterated a balanced rating. Barclays increased the price target for SCA to 115 kronor (previously 110) and reiterated an underweight rating. SEB raised the price target for Nibe to 49 kronor (previously 47) and reiterated a hold rating.
On the macroeconomic front, it is a very quiet day. The day starts at 12:00 with the release of weekly statistics from the Swedish Public Employment Service. At 16:00, the US will present its leading indicators.
Analysis and Insights:
In summary, last week’s market performance was influenced by Kamala Harris’s economic plan, fluctuating commodity prices, and company-specific news. The rise in base metals and gold prices, along with the mixed performance in the Asian markets, indicate ongoing global economic uncertainties. Investors should closely monitor political developments, commodity trends, and company updates to make informed investment decisions in the current market environment.