Bassanese Bites: Praying for a pause – May 30 2022
Weekly market recap
Global equities staged a nice comeback last week, reflecting short-term oversold conditions, signs U.S. inflation is past its worst, and – most importantly – desperate market hopes that the Fed could pause its aggressive rate hike plans after two 50 point hikes in June and July.
As I’ve noted in recent weeks, moreover, bond yields continued to edge lower last week – this time even with the rebound in equity risk sentiment. Meanwhile, oil prices are not following the disinflation script and pushed higher for the fifth week in a row. The $US weakened and the $A rebounded, with growth stocks marginally beating value.