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 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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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 After seven down weeks, risk markets finally recovered last week. Equities staged a meaningful rally globally, with the exception of emerging markets. The movement was probably a technical bounce, since nothing fundamental improved in economic data and the minutes from the US Federal Reserve (Fed) did not signal any reprieve in the…
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