Bassanese Bites: Heating up – February 20 2023
Global Markets Global equities nervously retreated further last week as bond yields edged higher amid concerns that stubbornly persistent US economic growth and inflation could see the Federal Reserve lift rates more than expected. The US$ also held up while oil prices remained range bound. The key …
Bassanese Bites: US CPI test – February 13 2023
Global markets The aftershock of the previous week’s much stronger than expected January US payrolls report continued to reverberate across global markets last week, with equities in retreat and bond yields and the $US higher. Outside the US, Russia’s announced oil production cut helped push up …
Bassanese Bites: No landing? – February 06 2023
Global markets There was another assertive move higher in global equities last week, reflecting ongoing ‘soft landing’ hopes and a dovish tilt by the US Federal Reserve. The US S&P 500 lifted 1.6% to take out the recent end-week high of 28 November and confirm a break …
Bassanese Bites: Fed to hike 0.25% – January 30 2023
Global markets It was another positive week for risk sentiment globally, with mixed US activity data consistent with the continued possibility of a soft landing, while a key US inflation report was better than feared. All up, it left markets with the view that the Fed …
Bassanese Bites: Hopeful start – January 23 2023
Global markets It was a relatively subdued week in global markets, with the main focus remaining on how quickly the US economy is slowing – and whether the Fed will relent and become less hawkish before it triggers a recession. …
Bassanese Bites: It’s about wages – December 19 2022
Week in review Despite a lower than expected US consumer price index (CPI) result, global equities fell back for the second week in a row due to continued hawkish sentiment from global central banks. The pullback in equities has been associated with a levelling out in …
Bassanese Bites: Good is bad – December 12 2022
Week in review Global equities suffered a setback last week after a few weeks of hopeful gains. Technically, the US S&P 500 tried but failed to break through the downward sloping trend line from the high of earlier this year, along with the 200-day moving average. …
Bassanese Bites: RBA to pause? – December 05 2022
Week in review Global equities lifted for the second week in a row as Fed chair Powell all but confirmed the Fed would only raise rates by 0.5% at its policy meeting next week. Another benign US October inflation report also supported sentiment, with the core …
Bassanese Bites: Twilight zone – November 28 2022
Week in review The third ‘Fed pivot’ trade this year – which essentially has been in place since mid-October – continued last week, with markets still basking in the growing likelihood that the US Federal Reserve will only raise rates by 0.5% at the December policy …
Bassanese Bites: Should we wait? – November 21 2022
Week in review With the tailwind of a good recent US CPI result, global equities tried hard to continue the rally last week – but ended down in the face of the unrelenting headwind of hawkish Fed commentary. Most Fed officials who spoke last week conceded …