As the week has progressed, the MEM TV markets have stalled and are currently trading lower than they were at the start of the week. This can be attributed to a number of factors which have dampened sentiment in the sector, such as geopolitical tensions, economic data, and concern over future corporate earnings.
The main driver of market sentiment can be traced back to the US-China trade dispute, which has had reverberations throughout world markets since it began in 2018. Last week the US announced new tariffs on Chinese goods, causing a wave of risk-off sentiment in the equity markets. This, combined with rising tensions in the Middle East, has caused some investors to move away from risk-on trades, such as those in MEM TV markets which depend on positive economic growth and corporate earnings.
Furthermore, economic data recently released in several developed and emerging markets has been less than encouraging. As the Eurozone and United Kingdom brace for Brexit, economic indicators have all suggested a slowdown in growth. Additionally, the US labor market readings have been lackluster this month, with the labor force participation rate dipping.
Finally, a decline in the MEM TV markets could be attributed to concerns over corporate earnings. Companies that have yet to report earnings for the first quarter of 2019 have seen their share prices dip, as investors worry that the recent market uncertainty may impact profit margins. This sentiment has been compounded by the fact that many large companies are displaying a notable reluctance to give any sort of future guidance, leading investors to take a more cautious stance.
In summary, MEM TV markets have stalled as the week has progressed. This is due to a combination of factors, such as a US-China trade dispute, lacklustre economic data, and fear over corporate earnings. While there are still underlying macroeconomic and stock-specific positives, investors are exercising caution due to the number of uncertainties in the near-term.