Bassanese Bites: Bear market folly – August 15 2022
Week in review
By far the global highlight last week was the softer than expected US July consumer price index report, with both headline and core inflation lower than market expectations. In turn this helped extend the rally in stocks and bonds that we’ve been enjoying since the peak in both bond yields and oil prices mid-June. Markets got a further boost later in the week with softer than expected producer prices, along with a rebound in consumer sentiment thanks to the decline in oil prices. As evident in the table above, global stocks and the S&P 500 closed the week above their respective 30 week moving average – suggesting a resumption of the uptrend. On this measure, US 10-year bond yields and the US dollar remain in uptrends, while oil prices have slipped into a downtrend in recent weeks.
