Parts of the global financial markets have been on a wild ride this week. In particular attention has been focussed on the meme stocks, the Reddit/retail backed stocks, most notably AMC Entertainment Holdings (a US based cinema chain).
On Wednesday its shares almost doubled in one trading session. As the most traded stock on the NYSE, its volume has accounted for approx. 20 per cent of the whole market’s volume on certain days this week. Elsewhere, though, the ride had been less wild as key global equity indices, including the S&P500, have hugged the top end of their recent ranges. Cracks, though, are beginning to appear and momentum is rolling over. Dollar strength on Thursday, as the currency rallied from oversold levels, added to the mood of risk aversion. In the UK, meanwhile, the FTSE100 has also continued to hug the top end of its recent range, while the mid-cap FTSE250 index has pushed above that level in the past few days.
Key data today includes the US monthly non-farm payrolls data (1:30pm London time). After last month’s dramatic miss, this will be watched closely. In particular the number of net new jobs, the unemployment rate and the average hourly earnings data (wages) are all important. Consensus estimates are for payroll gains of ~650k. Elsewhere G7 finance ministers are meeting, while the BIS’s ‘Green Swan’ conference continues discussing “How in practice can the financial sector take immediate action against climate change-related risks?”.