Fears of further monetary tightening across the Atlantic, following good US statistics, and the risks of recession in Europe, weighed on the trend during this weekly sequence, as the end-of-year holidays approach. While Europe ended in disarray, Wall Street is still losing ground in the absence of many operators. Volatility could continue during the holiday…
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Despite the new slowdown in inflation in the United States last Wednesday, risk aversion suddenly resurfaced at the end of the week, following the much more hawkish comments of the Fed and the ECB, leading to fears that monetary tightening will continue for a prolonged period and that the economy will enter a recession. After…
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Financial markets paused last week, fearing that monetary tightening will continue and that the world economy will enter a recession next year. While several better-than-expected US statistics (unemployment and ISM services) already raised doubts that the Fed would slow the pace of rate hikes, the new rise in the producer price index reinforces these worries and raise…
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Last week markets chose to ignore disappointing activity indicators, to focus on the signs of easing of the Chinese zero-covid policy, but especially the more accommodating words of Jerome Powell about a smaller rate hike in December. The monthly report on American employment dampened the mood, with job creations well above expectations (263K against 200K…
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In what is traditionally a less busy week, with Wall Street closing for Thanksgiving, the financial markets recorded a positive weekly performance, following confirmation that the pace of rate hikes could soon ease in the US and Europe. However, central banks warned that there was still some way to go to curb inflation and that further rate hikes…
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Markets last week The positive mood in risk appetite generally continued last week, with the US producer price index (PPI) confirming the trend of lower inflation hot on the heels of the previous week’s falling consumer price index (CPI). Against a backdrop of mixed economic data, with still strong employment and consumer spending in the…
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Markets last week Volatility was the order of the day last week, with the US Federal Reserve (Fed) driving markets down on Wednesday afternoon and the US employment report boosting the mood on Friday. In a tale of two central banks, the Fed and the Bank of England (BoE) both raised rates by 75 bps…
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Markets last week Despite headline news moving risk appetite in different directions, equities eked out a fourth weekly gain. Earnings disappointment started early during the week but picked up steam on Thursday and Friday with US tech companies missing estimates, cutting future guidance and in particular social media collapsing. Manufacturing and services surveys clearly showed…
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Markets last week Markets were in thrall to inflation data and central bank action last week, with political developments in the UK throwing some spice on an already volatile backdrop. US consumer prices spooked investors, particularly with an increase in core inflation. This number abruptly halted a risk rally in both bonds and equities. Simultaneously, however, the…
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Markets last week Equities soared on Monday and Tuesday before having second thoughts again later in the week. There were a couple of triggers for the surge coming from US data. On Monday, we saw the ISM (Institute for Supply Management) manufacturing PMI falling from 52.8 to 50.9 with the employment component slumping from 54.2 to 48.7.…
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