IPOs:

  • Nextracker Inc. (NXT), a renewable energy company, is coming up with an IPO on 10th of February. The company plans to raise $500 million and will issue shares at a price of $20-$23 per share. NXT is a leading provider of intelligent solar tracker and software solutions used in solar power plants around the world. Their products enable solar panels in power plants to follow the sun’s movement across the sky and optimize plant performance. Participate in the IPO.
  • Other interesting IPOs are taking place this week: Hesai Group (HSAI) is going public on Thursday, 9th of January. The company plans to raise $162 million with the price of $17-$19 per share. On Friday, 10th of January, SolarJuice (SJA) is coming up with an IPO. SJA plans to raise $20 million and will issue shares at a price of $17-$19.

Events:

  • 7th of February 2023 (Tuesday): RBA (Reserve Bank of Australia) interest rate decision

    The forthcoming meeting is widely expected to include a 25 basis-point (bp) increase, effectively raising the cash rate to 3.35% (90% chance). The RBA’s cash rate may peak at 3.60%, with a further 25 bp increase by April 2023, according to expectations.

    This comes after Australia’s recent acceleration of inflation dashed expectations of a rate halt, with the country’s monthly Consumer Price Index (CPI) soaring to 8.1% in November and December. How the RBA responds to the latest inflation surprise will be the subject of much attention. Recall that previous officials’ expectations for a decline in inflation by the end of last year did not materialize, which may mean that future rate decisions will be more dependent on data than on a firm stance.

    The AUD/USD will be key to watch, with the pair hovering just 1.2% away from its seven-month high.
  • 8th of February 2023, 12pm GMT-5 (Wednesday): Fed Chair Jerome Powell’s speech

    Fed Chair Jerome Powell made an effort to retain his aggressive position at the most recent FOMC meeting, but the markets are picking up on dovish undertones in his remarks. All eyes will be on him now to decide if he wants to use the next address as a chance to possibly clear things up.

    Equities may climb in line with the recent general trend, and the US dollar may continue to struggle, if there is no surprise or if the press conference follows the same script as the FOMC press conference.
  • 10th of February 2023 (Friday): University of Michigan US consumer sentiment index (prelim)

    The current forecast for the forthcoming University of Michigan consumer sentiment index indicates a little increase to 65.0 from the prior reading of 64.9. However, this will be the third consecutive month that consumer sentiment has improved. Additionally, important to monitor will be consumer inflation expectations. Year-ahead inflation forecasts decreased in January for the fourth consecutive month, down from 4.4% to 3.9%. To support growing expectations of a “dovish pivot” before the end of the year, more lowering in inflation forecasts may be on the horizon.

Earnings:

Market News for Last Week (30.01.2023 – 03.02.2023):

  • FED Interest Rate Decision:

On Wednesday, February 1st, the Federal Reserve made a crucial monetary policy decision by raising its key interest rate by a quarter of a percent. This hike has resulted in the key rate being 4.75%, the highest level since October 2007. After chairman’s Powell famous “it’s transitory” comments, inflation only seems to be growing and warns about more hikes possibly on the horizon.

The ultimate goal is to reach the documented US inflation rate of 2%, but currently stands closer to 6.5%. According to the Fed Chairmen, these staggered 25 basis point rate hikes can continue until the inflation target begins to approach its target.

  • US Tech Giants’ Layoffs and Post-Earnings Results:

This month has been a hard one for US tech giants. The biggest corporations laid off a considerable number of people to cut costs and adjust expectations for the fiscal year. Amazon let 18,000 people go, Google 12,000, Meta 11,000, Microsoft 10,000 and Salesforce 8,000. That’s only some of the biggest names. It’s worth noting that last week Meta saw a big rally after their earnings report.

Affected symbols: NAS100 and big tech companies mostly

  • Hindenburg Reports: How the World’s 3rd Richest Man is Pulling the Largest Con in Corporate History:

Hindenburg has released a scathing report stating that the world’s 3rd richest man, Indian businessman Gautam Adani, has been involved in shady business practices for decades. The Adani Group lost over $28 billion in just one day, recording the biggest intraday loss in history. Amidst the scandal, the group has canceled their scheduled share sale and is in full crisis management mode. Investors are still trying to gauge possible market exposure and what kind of spillover effects this might have on the wider world economy.

  • Friday NFP Report:

Every month, usually on the first Friday after the month ends, it’s considered to be the single most important trading day for forex. The NFP (Non-Farm Payroll) report, released monthly, measures the change in the number of employed people during the previous month, excluding the farming industry. This is important because job creation is a crucial leading indicator of consumer spending, which accounts for a majority of overall economic activity. There’s usually a huge spike when this report is released on all major currency pairs, especially USD pairs. The general rule is, if the outcome is better than the forecast, it’s good for the dollar and it should go up.

  • Netflix Have Announced a Crackdown on Password Sharing:

Netflix (NFLX) finally revealed details on its plans to stop users from sharing their family plan passwords – a practice that violates its terms of service and hurts its overall revenue. The streaming platform updated its Help Center to say that only accounts within one household will be shareable. To ensure devices are associated with the primary location, Netflix will ask users to connect to the Wi-Fi once every 31 days. It will be very interesting to see how the market will react to this as the stock has been on a freefall ever since it posted enormous growth amidst the pandemic. Devices are due to be blocked on the 31st of March, so keep an eye out for the stock.

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