The Long and Short of it, week ending 29 Mar 2024

Publication Type: Market Commentaries
The Long and Short of it, week ending 29 Mar 2024

A relatively restrained week for stock markets last week. The Dow Jones Industrial Average led the pack-of-three gaining slightly less than 1% on the week, followed by the S&P 500 Index rising less than ½ percent (but to another record close). The Nasdaq Composite Index, the laggard of the group, ended the week down by about 1/3 percent. Lukewarm Fed officials’ comments, seemingly trying to moderate easing expectations, combined with decent economic data (i.e., better-than-expected Q4 GDP, durable goods orders and home prices) acted to restrain stock market performance. 10-year Treasury yields and the U.S. dollar, reflecting this same restraint, ended the week unchanged. For the week, the S&P 500 Index rose 0.4% to 5,254.35, the Nasdaq Composite Index decreased 0.3% to 16,379.46, the Dow Jones Industrial Average increased 0.8% to 39,807.18, the 10-year U.S. Treasury rate was unchanged at 4.20% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) marginally appreciated 0.1%.

European stock indexes moved higher too last week with the STOXX 600 Index and the FTSE 100 Index both registering small gains. Growing expectations of at least 3 rate cuts this year, supported by dovish central bank officials’ comments and weakish economic data (declining German retail sales and a shrinking UK GDP), added to bullish investor sentiment, pushing markets marginally higher. 10-year Bund and Gilt rates and the British pound and euro barely moved, perhaps pausing before the long holiday weekend. For the week, the STOXX 600 Index increased 0.6% to 512.66, the FTSE 100 Index rose 0.3% to 7,952.62, the 10-year Gilt rate increased 1bp to 3.98, the 10-year Bund rate decreased 3bps to 2.29% and the British pound strengthened 0.2% and the euro weakened 0.1% both with respect to the U.S. dollar.

Top performing ETPs over the week

. 3x Long ETPs 3x Short ETPs
UK 3x Vodafone (3LVO) +8.7% -3x BAE Systems (3SBA) +3.3%
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The Long and Short of it, week ending 29 Mar 2024