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0307 2023

Market Insights

Market Insights - Week 27

Bas Kooijman

As we start a new week, let's take a look at the significant events in the global economy over the past week with our weekly financial update, presented by Bas Kooijman, the CEO and Asset Manager of DHF Capital SA.

Welcome to our weekly financial update, where we delve into the latest market movements and explore the exciting opportunities that lie ahead. In this edition, we'll review the performance across various regions, including the U.S., Europe, and other key markets. Let's dive in!

The U.S. market closed the quarter on a positive note, buoyed by a favorable macro backdrop. Strong growth and surprising inflation figures propelled the major benchmarks to solid gains. The S&P 500 Index experienced its best weekly performance since March, while small-caps and value shares outperformed. Notably, the tech-heavy Nasdaq Composite continued its impressive run, boasting a six-month gain of nearly 32%, marking its strongest start to the year since 1983.

A noteworthy milestone occurred as Apple's market capitalization exceeded USD 3 trillion, a first for a publicly traded company. This remarkable feat further solidifies Apple's position in the market, surpassing the entire market capitalization of five sectors within the S&P 500.

Across the pond, the European markets displayed resilience, driven by hopes of increased consumption in China and lower-than-expected inflation. The pan-European STOXX Europe 600 Index rallied, recording a solid 1.94% gain. Major stock indexes in France, Italy, Germany, and the UK also posted notable gains, reflecting growing market confidence. Despite inflation remaining above the European Central Bank's target, European government bond yields held near their weekly highs.

Looking beyond the U.S. and Europe, let's explore market developments in other regions. In Japan, the stock markets witnessed positive gains, with the Nikkei 225 Index rising by 1.2%. However, concerns arose as the Japanese yen fell to a seven-month low against the U.S. dollar, prompting authorities to closely monitor foreign exchange markets for excess volatility.

Meanwhile, in China, stock market performance was mixed, with weak economic indicators offsetting optimism regarding potential government measures to bolster economic growth. The official manufacturing Purchasing Managers' Index (PMI) improved slightly, while the nonmanufacturing PMI experienced a minor decline. Premier Li Qiang expressed confidence in China's ability to achieve its annual growth target of around 5% and announced plans to strengthen domestic demand and support overall development.

The dynamic nature of the global economy continues to present both challenges and opportunities for investors. As we reflect on the market performance across different regions, it is crucial to stay informed, agile, and proactive in our decision-making.

At DHF Capital SA, we remain committed to navigating these ever-changing landscapes and capitalizing on emerging opportunities. By monitoring key indicators, analyzing market trends, and leveraging our expertise, we aim to deliver superior results for our clients.

Stay tuned for our next weekly update, as we continue to explore the latest market developments and uncover potential pathways for success.

Bas Kooijman

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