Markets last week This was the week when markets reacted fully to the UK mini-budget and when the Bank of England (BoE) stepped in to stop potentially negative financial consequences. The Financial Policy Committee (FPC) of the BoE (which deals with financial stability issues), rather than the Monetary Policy Committee (which sets interest rates) started a programme of…
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Is the worst of market turmoil behind us? Canaccord’s Chief Investment Officer, Michel Perera, reflects on what has been happening recently in bond markets, the impact on equities and suggests “we must be careful not to embrace kneejerk reactions that dreadful markets often provoke.” Michel says what has happened this year is truly exceptional, but with…
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Markets last week Last week was dominated by inflation data, with the US CPI (consumer price index) providing a sobering outlook to investors who had been anticipating a smooth downward ride for price increases. At 8.3% headline CPI, the number fell less than expected, but more importantly the details showed that inflation was stickier. The…
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Markets last week In a week curtailed by the US Labor Day holiday, central banks were once again the focus, with the European Central Bank (ECB) hiking interest rates by an unprecedented 0.75% and senior officials at the US Federal Reserve (Fed) confirming the upward path for interest rates. The ECB delivered a 75 bp rate increase with…
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Markets last week In the wake of the previous week’s central bankers’ meeting in Jackson Hole, Wyoming, risk markets staged a full-scale retreat as over-optimistic investors digested the strong and unified message that there would be no premature pivot away from monetary tightening and a quick return to easy money. This is despite the clear…
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Markets last week The scenic ski resort of Jackson Hole, Wyoming, briefly became the centre of the financial world between Thursday and Saturday last week, when it hosted the US Federal Reserve (Fed) economic symposium from where vital communications for the markets were eagerly awaited. Before the gathering, markets positioned themselves for a relatively dovish…
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Markets last week Last week we saw the beginning of a change within financial markets regarding the rate rises and potential rate cuts that the US Federal Reserve (Fed) is likely to implement. This movement was triggered mostly by the minutes of the July Fed meeting. Reading the commentary carefully, investors realised that the Fed…
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Markets last week The week was dominated by US inflation readings and the market reaction to them. The US CPI (consumer price index) fell from 9.1% to 8.5% and the PPI (producer price index) dropped from 11.3% to 9.8%. Although in both cases the fall in energy prices over the previous month was almost entirely responsible…
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Markets last week Volatility was never far from the surface last week, with equities, bonds, currencies and commodities all experiencing high levels of daily and even intra-day change. The fundamental moves were triggered by inflation and economic surveys. Chinese economic growth fell during Q2 with the 12-month GDP barely above 0%, but the details for…
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Markets last week A better week for risk assets, although direction was uncertain and conviction over the slight uptick in equities low. As concerns have become focused more on the potential for recession (or indeed, whether we are already in one), fears over the ability of central banks to raise interest rates as aggressively as…
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