Latest news with #MaxKettner
Bloomberg
21-07-2025
- Business
- Bloomberg
EU Races to Secure US Trade Deal; Japanese PM Suffers Election Setback
US equity futures climb ahead of a busy earnings week. The European Union and the US head into another week of intensive talks as they seek to clinch a trade deal. The Japanese yen gains against the dollar as Prime Minister Ishiba vows to lead the nation despite a historic upper house election setback. Max Kettner of HSBC says he sees the current rally going further and Amy Wu Silverman of RBC Capital Markets calls the rally "reluctant." 'Bloomberg Brief' delivers the market news, data and analysis you need to set your agenda. (Source: Bloomberg)
Bloomberg
21-07-2025
- Business
- Bloomberg
US Equities Have Room to Run in Earnings, Says HSBC's Kettner
Max Kettner, chief multi-asset strategist at HSBC, sees markets continuing to rally amid earnings season, but says get ready to 'put a couple of hedges on some of the cyclical parts of the market' in the weeks ahead to lock in some gains. (Source: Bloomberg)
Yahoo
27-06-2025
- Business
- Yahoo
Markets Are Facing Classic Wall of Worry, HSBC's Kettner Says
"Investors are underestimating, heavily, how much we could see a melt up and a squeeze into the summer months," says Max Kettner, chief multi-asset strategist at HSBC, as he explains the upside catalysts he sees for markets. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Axios
27-06-2025
- Business
- Axios
Why a weak dollar is bullish for the tech industry
The relentless decline of the dollar in recent months has a silver lining for the tech rally in the stock market. Why it matters: A declining dollar can be considered bullish for U.S. stocks, as it provides an earnings boost for globally exposed companies when they convert their international revenue into dollars on financial statements. With tech and communication services now accounting for nearly half of the S&P 500's market cap, a rally in those sectors would almost certainly lift the broader index. How it works: Take Apple, one member of the Magnificent 7 tech heavyweights, which get about 60% of their revenue outside the U.S. Say Apple sells an iPhone for €1,000 in Europe. The company will then convert this sale into U.S. dollars when it reports earnings. Today, €1 equals $1.17, so a €1,000 sale could convert to $1,170 in reported revenue. In this hypothetical, Apple didn't raise prices or sell more. It just benefits from a weaker dollar. What they're saying: "People are really underestimating how good that weaker dollar is, particularly for tech," Max Kettner, the chief multiasset strategist at HSBC, tells Axios. Yes, but: There's concern that an earnings beat driven by dollar weakness isn't real since it's not rooted in company fundamentals. Some investors question the earnings quality of growth from currency conversions, which can change, rather than underlying financials, like increased revenue. Zoom out: Kettner is pitching bullishness to clients. One recent caller only wanted to discuss left-tail risk, the risk that you lose money. Kettner sees the larger risk on the right tail, where you lose out on making money. "We could genuinely squeeze 10% higher over the next two or three months because the earnings are so strong," he says. What to watch: Earnings season kicks off again in a few weeks. Tech earnings expectations for Q2 mirror Q1, with growth expected to be essentially flat.
Axios
25-06-2025
- Business
- Axios
Tech leads stocks to records after bear market scare
The S&P 500 has been on a rollercoaster ride, nearing a new all-time high, only 77 days after dipping into an intraday bear market in April. Why it matters: Historically, a market recovery of this size and speed signals more gains ahead, so forget the prior lows. This relief rally is bullish. By the numbers: Ryan Detrick, chief market strategist at the Carson Group, crunched the numbers. Stocks are up more than 20% from the April 8 lows. A 20% rally in two months has only happened five other times since 1950. In all of those prior cases, stocks were higher 1, 3, 6 and 12 months later. What they're saying: "We think the biggest risk to our view is that we're not bullish enough," Max Kettner, chief multiasset strategist at HSBC, wrote in a note to clients. Investors could be "underestimating the boost from AI and the weaker USD," he points out. That could drive efficiencies across the market and cushion any potential earnings weakness, respectively. Zoom out: What brings the market down tends to bring it back up. In this case: tech stocks. Losses in large-cap tech led the market to its April bottom. Now, XLK, an ETF that tacks the biggest tech names in the S&P 500, has hit its highest level in history. The intrigue: Dan Ives, senior equity analyst at Wedbush Securities, sees the tech rally gaining fuel from the removal of geopolitical risks. "With a weakened Iran and no nuclear capabilities, there is a growing view from tech investors that the opportunity for the Middle East to embrace the tech and AI boom is now on the doorstep being led by Saudi and UAE," he wrote in a note to clients. Reality check: It's not all roses. Market strategists say investors ignore recent headwinds such as trade turmoil and war at their own risk. What we're watching: Marci McGregor, the head of portfolio strategy for the chief investment office at Merrill and Bank of America Private Bank, expects stocks to be choppy in the months ahead.
