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As expected, the Fed raised rates +0.25% to a band of 5.00% to 5.25%. It was always about the wording that followed
This week sees further earnings announcements, especially around banks. Analyst calls show large banks have not yet materially tightened lending standards
A week of cautious risk-on, as Money Market & Global Equity funds drew massive inflows. Communications, staples & financials were the main beneficiaries.
2023 started off playing towards a cautiously bullish outlook. With clear signs of a risk-on rally, falling energy prices proved good news for inflation.
Just when Central Bankers thought stability might be forming around inflation, OPEC+ dropped a clanger and announced production cuts.
After the events of the past couple of weeks, we saw some calm return to markets as intervention attempts to stem deposit outflows seemed to be working.
With Credit Suisse rescued, attentions switched to Deutsche Bank whose shares fell last week. Its CDS spiked to over 2.20% amid stability worries.
Rate hikes, eruption and talks of collapse.
Moody’s described the US economy as “slowcession” predicting the US economy will go flat but not tip into a recession.
The US labour market has dropped rather unexpectedly, while inflation remains persistent and further rate hikes are expected this year.
A quiet week as the rate action debate continues resulting in a global yields rise. Elsewhere Money Markets & Bonds saw outflows & inflows respectfully.
Central Bank action was exactly as expected, last month's US jobs report showed a fall in unemployment & global service activity data was positive.
This week’s update discusses two important subjects; reconciling weak sentiment with rising equity markets & how serious is the US debt ceiling saga?
In what has generally been a data-light week, the news still points to a subdued picture. Global equity & bond funds posted net inflows.
In this week’s update the markets have had a strong start to the new year as inflation lowers.
2022 was definitely a memorable year, however, for all the wrong reasons. No one could foretell all the events that would unfold.
Will inflation begin to fall and interest rates top out from here? Will growth get a lift from the reopening of China after covid lockdowns?
Following a two week hiatus, we take a look at what's happened in the markets, including bond yields, a decline in energy prices and volatility.
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