06th March 2023

Market Overview Inflation is back in focus with expectations that the US Fed would pivot quickly disappearing. Rising costs remain an issue with the prices paid section of The ISM survey of manufacturing rising above 50 – indicating higher input costs. Growth in unit labor costs was also revised sharply higher for Q4. The economy […]

21st December 2022

Market Overview Risky assets continue to react to the central bank action with expectations that interest rates will remain higher for longer. Developed market equities valuations are challenged as earnings growth in 2023 as higher borrowing costs compress margins despite sales growth or share buybacks. Higher valuations, particularly for US equities will continue being under […]

15th November 2022

Market Overview Market rallied quite strongly last week as US inflation numbers came out lower than anticipated last month (7.7% vs anticipated forecast of 8%). Markets are now anticipating a more likely 50-bps rate hike in December rather than the 75-bps that was earlier feared. The University of Michigan survey shows consumer inflation expectations to […]

07th November 2022

Market Overview The US equity markets have faced another challenging week as markets reacted to the Federal Reserve meeting where a hike of 75 bps in interest rate brought the federal funds rate to 3.75%-4.0%. US Fed chair Powell has hinted at a slowdown in the pace of tightening, but that the current terminal rate […]

24th October 2022

Market Overview US equity markets ended a strong week on Friday, following a whole week of earnings releases. Earnings week continues in the week ahead with 165 companies (45% of the S&P 500 market capitalization) and 12 Dow companies set to report results. Investors sentiment remain cautious in the face of the perfect storm: elevated […]

18th October 2022

Market Overview The US equity market saw a bumpy week that ended with the S&P 500 and NASDAQ ending in losses as Thursday’s rally was wiped out on Friday. Inflation data releases were higher with core inflation at 6.6% and headline inflation at 8.2%. The stock markets initially rallied on the release as investors digested […]

10th October 2022

Market Overview Equity markets gained from a two-day rally on Monday/Tuesday as a result of the developing sentiment in the market questioning the Fed’s ability to raise rates with a developing recession at home, the impacts on the financial markets and potential defaults as well as struggles with allies in Europe and Japan on the […]

03rd October 2022

Market Overview Geopolitical tensions, central bank actions and a global market slowly recovering from its post-pandemic slowdown has made the past year a challenging environment for investors. Market volatility is expected to remain elevated, and largely sentiment driven. As institutional investors rebalance their positions closer to the end of year, we can expect more downward […]

19th September 2022

Market Overview Global equity markets fell last week, registering the largest weekly drop in US equity indices since June. The catalyst for the drop was the release of higher-than-expected inflation numbers for August. Fears for more aggressive hiking of interest rates by the US Fed and its effects on economic growth had spooked investors, with […]

12th September 2022

Market Overview Global equity markets rose marginally last week on the dollar weakening. However this proved a temporary relief. Across the board, corporate earnings estimates have been revised downwards, reflecting a weaker economic environment for global equities. The UK saw a change in leadership with the death of Queen Elizabeth II and King Charles ascending […]