Finance Am

Markets were in a risk averse mood, concerned about the impact on the economy from aggressive tightening. The S&P500 is down 3.2% and bond yields are lower. The US dollar underperformed, weighed down by US recession fears as well as yield spreads, with the UK and Swiss central banks delivering hawkish surprises overnight.

The Fed hiked by 75bp, as was widely expected following last Friday’s strong inflation data. With markets well positioned for the move, the US dollar and bond yields fell in response, and the S&P500 is up 1.5%.

The risk averse mood continued on the eve of the Fed’s rate decision. The S&P500 is down 0.4%, and at the lowest level since March 2021. The defensive US dollar made a fresh 20-year high, and bond yields rose further to decade highs.

Risk sentiment fell sharply after a surprisingly strong US inflation update which indicated the Fed may need to tighten even faster. The S&P500 closed down 2.9%, the defensive US dollar rose, and bond yields rose.

Risk sentiment continued to deteriorate on concerns central bank tightening will slow economies and hurt assets. The S&P500 is down 3.9%, and at the lowest level since March 2021. The defensive US dollar rose to a 20-year high, and bond yields rose to decade highs. There was no fresh news of note, markets still reeling from Friday’s strong US inflation data.

A risk averse mood prevailed, the S&P500 down 2.4%. The defensive US dollar is higher, as are bond yields following the hawkish ECB.

US equities fell as higher oil prices rekindled stagflation concerns. The S&P500 is down 1.1%, and bond yields and the defensive US dollar are slightly higher.

US equities rose, the S&P500 up 1.8%, and the defensive US dollar fell. Subdued labour data may have been read as Fed-friendly. Bond yields were contained.

Bond yields jumped following strong US economic data. The US dollar benefitted from higher yields, while equities fell, the S&P500 down 0.8%. Bank of Canada hiked by 50bp as was widely expected.

Equity markets in Europe and the US pared recent gains, the S&P500 down 0.6%. Currencies were mixed with little net movement, while bond yields rose slightly following strong European inflation data.

Physical US markets were closed, but equity futures indicated a further moderate gain in the S&P500, following a 0.9% gain in the Eurostoxx50. The USD and other safe-haven currencies again fell, while bond yields rose following strong German inflation data.

The US equity markets rebound continued, the S&P500 closing up 2.5%. The US dollar fell slightly, while bond yields were changed. There was little market-moving news.

US equity markets rebounded, the S&P500 currently up 1.0%. The US dollar is slightly higher, while bond yields are little changed. FOMC minutes indicated consensus on two more 50bp hikes, with a reassessment thereafter.

US equity markets fell sharply at the open and then partly recovered, the S&P500 currently down 0.8%. Bond yields fell with equities, later fuelled by some disappointing US data. Currencies were mixed and relatively contained.

Equity markets rose, partly helped by conciliatory comments from the US on trade with China, as well further stimulus announced by China. The S&P500 is currently up 1.6%, bond yields are higher, and the defensive US dollar is lower.

Equity markets were volatile, the S&P500 recovering from a 2.3% loss (and a one-year low) to close unchanged on the day. Bond yields fell, and the defensive US dollar rose. There was little major market-moving news.

Equity markets were volatile, the S&P500 recovering from a 2.3% loss (and a one-year low) to close unchanged on the day. Bond yields fell, and the defensive US dollar rose. There was little market-moving news.

Equity markets retained a risk-averse posture, the S&P500 down 0.6%. US bond yields also fell, displaying lingering caution on the economic outlook. Against that, the defensive USD underperformed all the majors, with higher commodity prices perhaps at play. There was little fresh news of note.

Risk aversion took hold as equity markets observed inflation’s impact on company earnings, the S&P500 down 4.2%. The defensive US dollar rose, while US bond yields fell.

Risk sentiment was upbeat amid some solid US economic data, the S&P500 up 2.0%. The defensive US dollar fell, while US bond yields rose, the latter helped by hawkish comments from Fed Chair Powell.