September 26, 2021

Last week, the market had no shortage of headlines, and volatility accompanied stocks all week. We started with the news of a possible default of Evergrand, the second-largest developer in China, on its $300 billion debt. How much? According to Bloomberg data, the amount is equivalent to about 2% of China's GDP plus $100 billion …

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September 19, 2021

Last week, all the prices from consumer goods to commodities to houses rose, except for the stock market, which finally paused and came down to make a reality check. We like to begin our commentary by referring to the famous 2001 song “Come on Down” by Crystal Waters....

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September 12, 2021

Last week, finally, the S&P 500 that benefited from an outperformance of the mega cap tech name logged its first five day losing streak since mid February. Another month, another above estimation inflation reading of the U S producer price index, PPI, hit a 40 year high Even the older style finishing goods PPI metrics, …

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September 05, 2021

Wow, shocker! Jobs data on Friday got literally "everyone" by surprise, i.e., Payrolls increased only 235 k versus the 732.5 k median estimate. Gold was up, dollar down on that huge miss stocks were struggling to find a direction out of the data. It came to our mind, perhaps now the bad news is really …

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August 29, 2021

We are not musicians, certainly not, but being active in the current market makes us think about great songs Last week reminds us of the great song “With a Little Help from My Friends” by the Beatles in 1967....

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August 22, 2021

What a week! It's fair to name Blue Öyster Cult's famous single in 1976 , “(Don't Fear) The Reaper”. The market's volatility jump signalled the risk of withdrawal of the monetary stimulus by the Fed i.e., fear of tapering....

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August 15, 2021

Last week was a nice, muted week for the stock and bond market. The coronavirus delta variant, excess liquidity, China's regulatory crackdown, and tapering were all not a concern for investors to halt the record setting ascent in stock market....

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August 08, 2021

Last week was all about payrolls. Better than expected U.S. payrolls met with relatively risk-on appetite, resulting in cyclicals moving higher while technology was dragging down the index. The market reaction can be explained by seeing technology as safe and ignoring the Federal Reserve, irrespective of inflation. Looking at last week's market data and market …

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August 01, 2021

Last week was the busiest week of the 2Q earnings season. More than a third of the S&P 500 companies reported on average 18% better-than-expected results, amid exceeding demand and higher profitability levels....

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July 25, 2021

Last week, was indeed a volatile week in markets. The week started with a “market sell-off” blast with a yield of 10-year Treasury hit as low as 1.12%. Eventually, the week ended with most major indices higher and S&P 500 closed on Friday at an all-time-high, despite kind of a disappointing U.S. data and the …

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July 18, 2021

Last week, major global indices in the U.S. and Europe lost some ground, but Asian stocks mainly remained uninterrupted. We like to highlight a couple of changes in 2H from 1H so far: • The 10-year yield hit the lowest level, i.e., below the pre-pandemic level. • Central banks started debating policy changes. • The …

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July 11, 2021

Is it coming Home or going to Rome? With the summer in full swing with European cup, we have closed a remarkable first half of the year. Last week was a volatile holiday-shortened week, and investors experienced a bit of everything from labour market readings to OPEC+ decision and Federal Reserve minutes as well as …

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July 04, 2021

Last week, stock markets were drifting rather than moving with real conviction. The S&P 500 rose for a seventh consecutive weeks, the longest winning streak since August. The second half of the year kicked-off with U.S. job's report in focus to gauge if the economic recovery momentum from the first half will be sustainable in …

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June 27, 2021

Are stocks on steroids or they are playing great music indifferent of what future is holding, just like Titanic? Last week, stocks went on to set a new record high while the long-end U.S. Treasury nominal yield was marginally lower. Our message is “welcome to the topsy-turvy world of the 21st century policy making”, with …

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June 20, 2021

Last week, was certainly not a boring week, as stocks first hit a new record high, then finished the week on a losing stream. On Friday, we had triple witching, i.e. every three months on the third week, with the same loosing pattern amid an extremely tight trading range which led to a compressed market …

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June 13, 2021

As we enter the summer not only the weather is heating up, but also inflation as measured by CPI. Last week, major global indices extended the record and government bond yields collapsed to their three-month low. The consumer price index (CPI) rose 5% from a year ago with the core index, i.e. excluding food and …

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June 06, 2021

Last week, started with a lack of motivation as trading showed no clear direction. Traders' eyes were on Friday's job data, which created random trading with low volume. The Friday job data, as so many investors hoped to provide a new momentum, was not fantastic, but not bad either, in our view. Investors once more …

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May 30, 2021

The month of “Sell in May and go away” is just about to end with a happy ending for risk assets. Thanks to weaker USD and waning global inflation risks. Last week, major global stocks made a comeback as inflation fear subsided. The market focus was on the consumer data with purchases of goods and …

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May 23, 2021

“April showers bring May flowers”, as economy is blooming and corporate profits surging. Last week was an intense week for markets, from tech to crypto, and even for bonds and commodities. The global market finished side-ways, tilted upwards, as it was in tug-of-war between rising inflation concerns and U.S. Federal Reserve monetary policy decision....

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May 16, 2021

Last week, global stocks posted their worst week since February as inflation fear sent shivers through market. The CPI number indicated fast rising inflation with a "wow" effect. Prices rose in areas which have been mostly impacted by the pandemic and now are facing the gradual reopening. On a closer look at the CPI components, …

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