A summer of value
Francesco Bergamini
Head of Representative Office in Italy @ Freedom Finance Europe Ltd | Financial broker
Weekly market brief: 5 - 9 June 2023
Positive week in markets that is finally seeing not only tech stocks joining a positive momentum.
We find interesting price action on the FTSE100 (#ISF) that is now floating on its 200MA as happened in March 2023 before the strong rally upwards.
On the other side of the Atlantic, the value play is becoming increasingly attractive: the Dow Jones (#DIA) skyrocketed 700 points on Friday which could lead to a turnaround move. In addition, similar positive move has been reported also on the Transport index (#DJT) that broke upwards after over a month of indecision.
The direct #correlation between Industrial and Transport index is a positive indicator of how the value sector could possibly be set for a summer rally.
Chinese market, with #FXI, moved strongly to upside with almost a +8.00% in the last three days. It’s important to notice how the Hang Seng bounced from the 18,000 HKD supported by good volumes.
#Tadawull in focus after a bold move in oil
To conclude, positive outlook across the board with focus on Value sectors: Chinese market deeply undervalued compared to its peers.
The week ahead is relatively calm from a macroeconomic perspective, which could allow price action to continue.
We continue to monitor the following indicators:
LSEG (London Stock Exchange Group) , Borsa Italiana , Deutsche Börse , S&P Global , Nasdaq , Dow Jones , Saudi Tadawul Group , Dubai Financial Market , Hong Kong Exchanges and Clearing Limited (HKEX)