Category Archive for: Business

Weekly Market Update

Post date: 04/04/2022 13:44 The euro, together with the Swedish krona and the Swiss franc led the G10 rankings last week. The sense that the Russian invasion may be entering a less catastrophic stage certainly helped, as did the pullback in oil prices after Biden announced massive sales of oil from the US strategic reserve…

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Weekly Market Update

Post date: 31/03/2022 19:00 The worldwide inflationary episode continues to upend expectations and historical correlations. The bloodbath in world bond markets took a turn for the worse last week, sending the 10-year Treasury yield close to the psychological level of 2.50% that was crossed at the start of this week. However, world stock markets continue…

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Weekly Market Update

Post date: 22/03/2022 06:18 Stock markets and risk assets generally posted impressive moves last week, discounting the impact of the Russian invasion of Ukraine and treating Fed hawkishness as a case of “buy the rumour, sell the news”. As an example of the optimism pervading financial markets, European stock indices closed the week at essentially…

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Weekly Market Update

Post date: 14/03/2022 12:32 The ECBs unambiguously hawkish messaging last week did not stop the euro from sinking to new lows as concerns mount over stagflation or worse. We also saw a significant rebound in Eastern European currencies led by the Polish zloty, as central banks in the region both raised interest rates aggressively and/or…

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Weekly Market Update

Post date: 07/03/2022 12:38 European currencies sink, dollar soars as the news from Ukraine get grimmer. The worsening humanitarian and security crisis brought about by the Russian invasion of Ukraine continues to buffet financial markets. There are volatile moves and a flight to safe havens everywhere, but European assets are being punished with particular severity,…

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Weekly Market Update

Post date: 21/02/2022 12:10 Inflation and central banks have taken a backseat to geopolitics in financial markets, and currency markets are no exception. Among the G10 currencies, the Japanese yen and the Swiss franc, the transitional safe-havens, rallied against the US dollar. It must be noted that commodity currencies, like the Australia and New Zealand…

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Weekly Market Update

Post date: 15/02/2022 07:25 Volatility has made a triumphant return to markets so far in 2022, as macroeconomic and geopolitical shocks continue to buffet markets. The January inflation report in the US delivered yet another jolt to investors, coming in far above estimates at 7.5% on the year. Fixed income markets worldwide sold-off on the…

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Weekly Market Update

Post date: 07/02/2022 11:54 We have been warning that the ECB’s plans to wait until 2023 before hiking rates were a pipedream in a world of rising inflationary pressures, and our view was fully vindicated last week. The massive upwards surprise in the Eurozone January inflation set the stage for Lagarde’s hawkish pivot. Understandably, the…

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Weekly Market Update

Post date: 31/01/2022 11:18 The Federal Reserve last week made it clear that it sees the US economy at full employment, that inflation is the biggest problem it faces, and that its priority is now to bring it down. The old correlations reasserted themselves in currency markets, as the dollar soared against all of its…

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Weekly Market Update

Post date: 24/01/2022 11:40 Last week saw the continuation of an interesting theme, in which emerging market currencies continue to hold their own even as stock markets in developed countries are shaken by bouts of risk aversion. US rates took a breather in their march higher, with the 10 year yield down 2 basis points.…

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