OvalX Daily Market Bulletin - 23 August

The market acted yesterday as if negative data on inflation had appeared, although no such obvious data has actually emerged yet. Further, the sentiment that inflation has peaked took a beating, causing many of the recent "buy on weakness" investors to exit positions. This in turn raised the possibility that these moves formed the summer lows and supported a bear market rally.

The ONS detailed how the UK economy dropped 11 percent in 2020, the largest yearly fall since 1709, the year of the "great frost". This is in part due to the economy being hit so hard and so early by the pandemic, which caused the worst fall of any leading economy.

AMC lost some 40% of its value yesterday after concerns it may follow the same fate of Cineworld and require bankruptcy protection and amidst criticisms that its launch of a preferred equity that is only convertible on board approval is an attempt to milk its meme stock status and allow it to use them to help it to pay its high debt costs.

Is Germany 40 on course back to its summer lows?