InvestMacro

Source: Graham Mattison  (12/28/22)

These upcoming events relate to this firm’s efforts to get one or more of its technologies integrated into an existing product and sold commercially, noted a Water Tower Research report.

Mattison wrote that on the first day of the expo, Meta Materials will participate in ShowStoppers at CES 2023, a presentation of new technologies to the media, industry leaders, and advocates.

During all four days of CES, the Nova Scotia, Canada-based company will host Booth 9417 in the North Hall, where some of its technologies, all of which improve existing products in an important way, will be on exhibit.

Another catalyst to watch for in 2023 is the announcement of Meta Materials’ first technology being commercially incorporated into a product. This would constitute “a major milestone in the company’s growth of commercial revenues,” Mattison wrote.

Meta Materials will showcase its NANOWEB transparent electromagnetic interference shield installed in the door of a microwave oven.

The company also will demonstrate its NANOWEB heaters for deicing/defogging of advanced driver-assistance systems sensors; its NANOWEB antennas and electrochromic lenses for augmented reality eyewear; its NANOWEB 5G reflector films for managing signal propagation indoors and outdoors; and its NPORE nanocomposite ceramic battery separator.

These collectors, which reduce copper usage and improve safety, will be displayed in the company’s booth and incorporated into the exhibited Project Arrow concept electric vehicle.

Another catalyst to watch for in 2023 is the announcement of Meta Materials’ first technology being commercially incorporated into a product. This would constitute “a major milestone in the company’s growth of commercial revenues,” Mattison wrote.

Water Tower Research purported this technology likely will be NANOWEB for application in microwave oven doors, given several factors. One, this could be brought to the consumer product market quickly. High-end microwaves are an ideal initial target market, given their consumers will be less price-conscious and their manufacturers seek new technology to gain market share. Also, microwave ovens are ideal for the product size Meta Materials can currently produce.

To get an idea of the size of the market for these appliances, Mattison noted, “it is estimated that about 70 million microwaves are sold each year, with the typical replacement being about seven to 10 years.”

Meta Materials is currently trading at about $1.41 per share.

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Disclosures For Water Tower Research, Meta Materials Inc., December 19, 2022

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By JustMarkets

The US indices traded yesterday without a single trend. By Tuesday’s stock market close, the Dow Jones Index (US30) increased by 0.11%, while the S&P 500 Index (US500) decreased by  0.40%. The NASDAQ Technology Index (US100) fell by 1.38%.

A Wedbush Securities research report indicated that the decline in tech stocks, including Apple, Amazon, and Microsoft, should turn into a sharp rebound next year as companies think about protecting their profitability and the US Federal Reserve will sooner or later begin to wind down its rate hike campaign. The undeniable fact remains that US inflation is too high. And if the US economy does enter a recession with a Consumer Price Index over 5%, the Fed would be in a quandary because they have little room to stimulate the economy. This would be a scenario that the Federal Reserve would try to avoid, which also helps explain why the Fed is moving forward so aggressively.

Joseph Trevisani, the senior analyst at FXStreet.com, said historical patterns suggest that investors next month are likely to benefit from the recent gains in the euro and yen, which could support the dollar in the short term.

Equity markets in Europe were mostly up yesterday. Germany’s DAX (DE30) gained 0.39% yesterday, France’s CAC 40 (FR40) added 0.70%, Spain’s IBEX 35 index (ES35) closed around opening levels, and Britain’s FTSE 100 (UK100) not trading due to the bank holiday.

European Central Bank President Luis de Guindos believes that the Eurozone is in a very difficult economic situation. Inflation remains high and economic growth in Europe remains low, so the ECB finds itself in a difficult position when it has to raise rates amid the recession, as is happening in the UK at the moment. The main question analysts are asking is whether the ECB can stay hawkish, with inflation above 10%, without hurting the European economy too much. The same can be said for the Bank of England, and that makes the prospect of a weaker euro and sterling an attractive scenario for next year.

Oil hit a 3-week-high amid loosening COVID-19 restrictions in China, with US production levels down due to the winter storm. About 450,000-500,000 barrels a day of oil were cut over the Christmas weekend in the United States. The weather in the US is predicted to improve this week, which could lead to a slight decline in oil prices.

Russian President Vladimir Putin on Tuesday signed a decree banning the supply of oil and petroleum products to countries participating in the price cap for five months from February 1.

Part of the Asian market did not trade yesterday. Japan’s Nikkei 225 (JP225) gained 0.16%, China’s FTSE China A50 (CHA50) added 0.76%, India’s NIFTY 50 (IND50) increased by 0.65%, Hong Kong’s Hang Seng (HK50) and S&P/ASX 200 (AU200) were not trading due to the bank holiday.

China said it would abolish the COVID-19 quarantine rule for incoming travelers, an important step toward opening its borders even as the number of COVID-19 cases has surged. China will stop requiring incoming travelers to undergo quarantine as of January 8.

Bank of Japan (BOJ) policymakers discussed the growing prospect that higher wages could finally eliminate the risk of a return to deflation. While markets are growing expectations that Japan’s Central Bank is likely to change its policies, investors’ attention is likely to focus on who will lead the BOJ when Governor Haruhiko Kuroda steps down in April. Analysts are confident that a policy review will follow the appointment of a new governor in the second quarter of 2023.

S&P 500 (F) (US500) 3,829.25 −15.57 (−0.40%)

Dow Jones (US30) 33,241.56  +37.63 (+0.11%)

DAX (DE40) 13,995.10 +54.17 (+0.39%)

FTSE 100 (UK100) 7,473.01 0 (0%)

USD Index 104.19 -0.13 (-0.12%)

• – Japan Industrial Production (m/m) at 01:50 (GMT+2);

– US Pending Home Sales (m/m) at 17:00 (GMT+2).

By JustMarkets

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

By ForexTime

Markets are very much in holiday mode with very thin volumes and light liquidity.

This means we see choppy price action with swings between gains and losses in very quick time. Big trading desks at banks and funds are manned with skeletal staff so position sizing is minimal and new bets are not being taken until the new year.

The well-known Santa Rally in US stocks may struggle this year with the broader S&P 500 index closing lower by 0.4% after clawing back some early losses.

What does the “Santa Rally” typically look like?

• The fabled festive move higher in stocks implies gains over the last five trading days of the year and the first two of the new year.
• Returns over that period average 1.3% compared with 0.2% for any rolling seven-day trading period.

READ MORE: (December 22nd) Santa Rally coming to town?

Tech’s tumble

Growth stocks were hurt yesterday by various factors including higher Treasury yields.

The tech-laden Nasdaq finished 1.4% lower with some individual megacap growth stocks especially hit by selling.

• Apple finished 1.4% lower as worries still linger about covid-19 and its China production facilities. Earlier in the session, the tech giant hit their lowest point since June 2021. The June low from this year at $129.04 is strong support for the bulls.
• Meanwhile, Tesla tanked again, plunging 11.4% and bringing the total of this month’s losses to nearly 44%. The worst month in at least 10 years has been brought about by the distraction for CEO Elon Musk running his new company, Twitter. A potential sales slowdown at the EV-maker has also not helped, with Reuters reporting that a reduced production schedule in China would be extended into January.
• Some of the former darlings of the market have suffered hugely with Facebook parent Meta slumping 65% and once-all-conquering Amazon falling around 50%.

Investors are keen to see the 2022 exit door with the Nasdaq Composite tumbling close to 34% so far this year.

Key for the new year will be inflation and the Fed’s policy tightening path with questions around a recession or soft landing.

Research shows that a bear market has never bottomed before the start of a recession.

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com