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Carlsquare weekly market letter: Turnaround could last until year-end

Read the weekly market letter here:

Carlsquare weekly market letter

  • Falling interest rates have boosted equities ahead of the reporting period. It is still a trader’s market where momentum went positive after the US jobless claims report last Friday. From a technical point of view, it can last to year-end.
  • S&P500 earnings are expected to rise sharply in Q4 2023. Therefore, corporate guidance after Q3 results will be more important than usual.
  • We see that Swedish banks should continue to report strongly in Q3 2023 and are therefore worth buying. The same applies to engineering companies that focus on long-cycle products, such as Atlas Copco and Volvo.
  • The trigger for lower rates in the US was lower oil prices (WTI in the graph below), which fell after last week’s unexpected inventory build-up. Lower oil prices have an impact on inflation expectations and interest rates.


The information in this presentation is based on what the publisher, Carlsquare, believes to be reliable sources. However, we cannot guarantee its content. Nothing in the presentation should be construed as a recommendation or solicitation to invest in any financial instrument, option, or the like. Opinions and conclusions expressed in the presentation are for the recipient’s use only. The contents may not be copied, reproduced, quoted, or distributed to anyone else. Carlsquare shall not be liable for any loss arising from any decision taken based on the information contained in this presentation. Past performance should not be taken as an indication of future results. Changes in foreign exchange rates may affect the value, price or income of an investment made abroad or in a foreign currency.

The analysis is not directed at U.S. Persons (as that term is defined in Regulation S under the United States Securities Act and interpreted in the United States Investment Companies Act of 1940), nor may it be distributed to such persons. The analysis is not intended for natural or legal persons where the distribution of the analysis to such persons would involve or entail a risk of violation of Swedish or foreign laws or regulations.

Carlsquare weekly market letter: Turnaround could last until year-end