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Apple surges to new highs on AI plans
After initially dropping 2% as markets digested news from the conference, Apple (AAPL NASQ) shares later surged 7% to a new all-time high after the company finally announced its plans related to artificial intelligence (AI). Known as Apple Intelligence (also under the AI acronym), Apple debuted its AI features set for iPhones, iPads and MacBooks, with an upgrade to Siri and a ChatGPT partnership. These AI features will become available later this year, but only on the latest hardware. Only iPhone 15s and up will gain these AI features, while MacBooks and iPads will require Apple’s M1 chip. Markets can expect a new AI-driven super-upgrade cycle for Apple devices, which is good for earnings and profit, supported with a solid strategy to ensure the company can compete in the new AI era.
Buy any rates-driven pullback in equities, recommends HSBC strategists
According to HSBC strategists quoted in a Bloomberg report, sentiment and positioning indicators signal a possible short-term pullback in stock markets, driven by uncertainty around the outlook for interest rates. The team, which includes Duncan Toms and Max Kettner, recommended buying any dips, adding that the bank’s short-term sentiment and positioning indicators are starting to flash a warning sign for the first time since late March. “We’d expect any weakness in risk assets to be both short-lived and shallow, and we think this presents a pretty good tactical (re-)entry point.” They warn of “more question marks” around 2H related to corporate earnings, interest rates and economic growth “Equities could hit a bit of a speed bump in 2H, with credit overall looking more attractive”
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Market Movements – 25 June 2024
Apple surges to new highs on AI plans
After initially dropping 2% as markets digested news from the conference, Apple (AAPL NASQ) shares later surged 7% to a new all-time high after the company finally announced its plans related to artificial intelligence (AI). Known as Apple Intelligence (also under the AI acronym), Apple debuted its AI features set for iPhones, iPads and MacBooks, with an upgrade to Siri and a ChatGPT partnership. These AI features will become available later this year, but only on the latest hardware. Only iPhone 15s and up will gain these AI features, while MacBooks and iPads will require Apple’s M1 chip. Markets can expect a new AI-driven super-upgrade cycle for Apple devices, which is good for earnings and profit, supported with a solid strategy to ensure the company can compete in the new AI era.
Buy any rates-driven pullback in equities, recommends HSBC strategists
According to HSBC strategists quoted in a Bloomberg report, sentiment and positioning indicators signal a possible short-term pullback in stock markets, driven by uncertainty around the outlook for interest rates. The team, which includes Duncan Toms and Max Kettner, recommended buying any dips, adding that the bank’s short-term sentiment and positioning indicators are starting to flash a warning sign for the first time since late March. “We’d expect any weakness in risk assets to be both short-lived and shallow, and we think this presents a pretty good tactical (re-)entry point.” They warn of “more question marks” around 2H related to corporate earnings, interest rates and economic growth “Equities could hit a bit of a speed bump in 2H, with credit overall looking more attractive”
Stock watch: Telkom SA
The outlook on Telkom (TKG-JSE) has
turned more positive as management execution is finally improving, evidenced by
the sale of Swiftnet, various self-help initiatives that are driving cost
savings such as contained labour costs and roaming agreements, and mobile
market share gains.
The stock trades at a significant discount to history and peers, and at current valuation levels, risks are largely balanced.
These factors warrant a refreshed look on the stock.
Sector focus: Copper mining
The world’s top copper supplier Codelco is striving to reverse slumping output after a rock collapse last year continues to affect output. “This situation was foreseen in annual planning and does not affect the committed production budget,” the Chilean state-owned company said in a written response to questions about the massive El Teniente mine. El Teniente’s first-half production is tracking lower than the same period last year as it repairs areas of the underground operation affected by the collapse last June. It’s one of the setbacks at mines and projects that have seen Codelco’s annual output reach the lowest levels in a quarter century, with Chairman Maximo Pacheco vowing last week that a recovery will begin in the second half.
In other sector news, the new boss at Freeport-McMoRan (FCX-NASQ), Kathleen Quirk says she’s focused on unlocking a large mine’s worth of copper from vast stockpiles of waste rock. The largest listed copper mining company hopes to generate annual production of as much as 800 million pounds of copper through that kind of processing technology — equal to one-fifth of its current total production.
Information correct at time of publishing. It is important to conduct thorough research and analysis using a combination of fundamental and technical analysis techniques to make informed trading decisions. Additionally, consider your risk tolerance, investment objectives, and time horizon when assessing company performance for trading.