Weekend Edition: 25th August 2023

This weekend’s edition delves deep into the financial world. A highlight includes MPC’s review of Wesfarmers earnings, a favorite among MPC Markets. This week saw 40% of the market deliver their earnings, resulting in unpredictable market reactions. Disappointments led to heavy selling, while some companies, expected to be under pressure, experienced extreme rallies. This made it one of the most perplexing earnings seasons in recent memory.

The upcoming Jackson Hole Symposium is also in focus. As US bond yields reach 16-year highs, all eyes are on Powell’s speech. Most anticipate a hawkish tone, shifting the narrative from ‘how high’ to ‘how long’. Last year’s symposium saw the S&P 500 fall by 3.4%. With inflation dynamics changing, investors remain on edge, closely watching for any signs of a hard landing.