Bassanese Bites: Eerie calm – March 27 2023
Global markets Last week an eerie calm descended on global markets. Equities squeezed out a second week of small gains while bond yields and the US dollar eased. Although all central banks that faced policy meetings went ahead and raised interest rates – from the United States …
Bassanese Bites: US economy remains firm despite market mayhem – March 20 2023
Global markets Global equities enjoyed something of a relief rally over the past week as the world’s financial regulators played ‘whack a mole’ as each new banking problem raised its head. The US S&P 500 bounced back 1.4% after a 4.5% decline the previous week. …
Bassanese Bites: Silicon Valley Bank: 4 critical questions for markets – March 13 2023
Global markets Global equities suffered a setback last week, resuming the downtrend in prices which has been evident since stronger-than-expected US economic data and “no landing” fears began to upset investors at the end of January. The week began with hawkish comments from Fed Chair Powell suggesting …
Bassanese Bites: RBA expected to raise rates again this week – March 06 2023
Global markets Global markets enjoyed somewhat of a reprieve last week, with steadier bond yields helping stocks lift for the first time in three weeks. The $US also eased. That said, US 10-year bond yields did briefly break above 4% last week for the first time …
Bassanese Bites: Markets fear “no landing” scenario as inflation stays strong – February 27 2023
Global Markets Stronger than expected activity data and stubbornly high consumer price inflation saw US stocks fall and bond yields rise for the third week in a row. Firm recent US activity and inflation data have markets fretting over a potential “no landing” economic scenario in …
Bassanese Bites: Heating up – February 20 2023
Global Markets Global equities nervously retreated further last week as bond yields edged higher amid concerns that stubbornly persistent US economic growth and inflation could see the Federal Reserve lift rates more than expected. The US$ 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. …