Weekly Market Update
Weekly Market Update
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Author : The BlackSummit Team
Date : June 10, 2023
The BlackSummit Team | June 10, 2023
Global Market News
| Global equities make gains Global equities made slight gains this week. The S&P 500 and Dow Jones closed up 0.39% and 0.34%, respectively, while the Nasdaq gained 0.14%. The US 10-year Treasury yield increased to 3.74% while the price of a barrel of West Texas Intermediate crude oil dropped to $70.37. Volatility, as measured by the CBOE Volatility Index, came down to 13.83. |
| World Bank raises 2023 global growth outlook World Bank economists have revised their global growth outlook for 2023, raising their forecasts to 2.1% from 1.7% as major economies prove to be more resilient than expected. Nonetheless, a major slowdown in growth is expected as compared to last year’s 3.1% pace, and the multilateral lender warns “the global economy remains in a precarious state.” Looking ahead to 2024, the World Bank cut its growth outlook to 2.4% from 2.7% as it expects higher interest rates and the tight credit environment to weigh on economic activity next year. |
International Developments
| Ukrainian counteroffensive underway, Major flooding around Dnipro River Ukraine’s long-awaited counteroffensive seems to be beginning as multiple sources report large-scale attacks against Russian positions in the south and east of the country. Tuesday’s destruction of the Kakhovka dam in southern Ukraine, which caused intense flooding along the banks of the Dnipro River, may complicate the positions of both sides. It is still unclear as to which side is responsible for the dam’s destruction. |
| Rohingya refugees protest for repatriation Thousands of Rohingya refugees in Bangladesh joined in protest Thursday, demanding to be repatriated to Myanmar so that they could leave the crowded refugee camps they have been living in since a military crackdown in 2017. The largely-Muslim ethnic minority has seen persecution from Myanmar’s military junta for years since the country’s independence. The military junta is unlikely to welcome the Rohingya back. |
US Social & Political Developments
| Trump indicted for mishandling documents Former President Donald Trump said that he was indicted for his mishandling of classified documents at his Florida estate Thursday, making him the first president in US history to face such charges. The indictment has the potential to change the political landscape of the Republican presidential primary, of which Trump has been seen as the leading candidate by a broad margin. The former president declared his innocence and condemned the investigation as a “witch hunt.” |
| Wildfires in Canada cause health and climate concerns across the Northeast Wildfires that spread from Canada’s western provinces to Quebec have caused smoke to drift into the US, triggering air quality alerts to swathes of the country, largely in New England. Officials urge residents to stay inside, and the smoke has caused scheduling issues from schools to airports. The pollution may not dissipate for several days. Canadian forest officials say that climate change has increased the frequency and intensity of wildfires in the region. |
Corporate/Sector News
| Apple unveils mixed-reality headset Apple unveiled its new product, the Apple Vision Pro, at the World Wide Developers Conference on Monday. The product is expected for release next year and is priced at $3,499. The headset, which looks like a pair of ski goggles, is billed as “ushering in an era of spatial computing.” In effect, the device will be a full computer in a headset and comes equipped with sensors that allow users to control virtual displays with their eyes, hands, voice, and a 3D camera. |
| Ford and GM to be integrated into Tesla’s charging network Coming off the heels of Ford CEO Jim Farley’s announcement two weeks ago, General Motors CEO Mary Barra has announced this week that General Motors will similarly join Tesla’s charging network. The move by both expands access to charging stations for Ford and GM customers, which consistently rates a top concern for buyers when considering the switch to an electric vehicle. Additionally, the decision strengthens Tesla’s position in the market, as Ford and GM will need to switch to Tesla’s North American Charging standard connector, paving the way for Tesla’s protocol to become the standard in the US. Both will begin producing Tesla-connectable vehicles in 2025. |
| SEC sues Coinbase and BinanceThe SEC has filed suit against Coinbase and Binance, accusing both of operating unregistered securities. The SEC is additionally charging that Binance secretly sent billions of dollars of customers’ funds to companies controlled by its CEO Changpeng Zhao, among other allegations. Both companies have denied any wrongdoing, with Coinbase complaining of a lack of clear guidelines emanating from the SEC over crypto. News of the lawsuits sent crypto prices down this week. |
| Recommended Reads |
 | This week from BlackSummit Fighting the Last WarThe BlackSummit Team Polyarchy at a Time of Geopolitical Cycles: Canceling the Noise, Part XXV (finale)John E. Charalambakis Geopolitics & the Day After |
| Image of the Week |
