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 […]
22nd August 2022
Market Overview The rebound in equity markets over the summer following the US Fed’s policy meeting in July is unlikely to be the start of market recovery as inflation numbers are still high and real interest rates are unlikely to fall anytime soon. Underlying macro data continues to trend downwards, with further earning downgrades expected […]
15th August 2022
Market Overview Equity markets were up last week as risk assets jumped from their June lows and equity markets staged a mid-summer rally. US inflation numbers offered a positive surprise with July CPI numbers beating expectations and headline CPI falling on annual basis from 9.0% to 8.5% and core inflation rate droppedto 5.9%. Having said […]
8th August 2022
Market Overview Citing Russia’s invasion of Ukraine, the Bank of England (BoE) raised its policy rate by 50-bps to 1.75% last week. BoE also forecasted a recession for the next six quarters beginning Q4 2022. BoE warned headline inflation to rise above 13% at the end of 2022 before declining only in 2023 (currently UK […]
1st August 2022
Market Overview Equity markets have largely reacted positively following the FOMC meeting last week. Long-term inflation concerns have subsided with inflation expectations falling to 2.8% p.a. in July vs. 3.1% in June (University of Michigan Survey of Customers). Concerns about an impending recession has replaced worries about rising prices with growth indicators signaling a slowdown. […]
25th July 2022
Market Overview The week ahead will be a busy one kicking off with the US Federal Reserve conclusion of its two-day meeting on Wednesday. The markets are pricing in a 75-bps rate hike with 9% of participants predicting a 100-bps hike(Bloomberg). All eyes will be on Chair Jerome Powell during the Fed Press Conference to […]
18th July 2022
Market Overview The Labour Statistics Bureau released its US CPI report, which stated that annual inflation went up by 9.1% in June, representing the highest level since November 1981. This caused the yield curve between the US 10-Year and 2-Year treasury yield to invert to its largest point since 2000. Yield curve inversions are often […]
12th July 2022
Market Overview Recession fears dominated headlines last week with renewed fears of a lockdown in China. The Euro almost achieved dollar parity on weaker economic data from Germany and the Eurozone. In contrast, June US employment reports remained resilient last week as job creation remained on highest levels since the Second World War, allowing the […]
