The Fed's Dovish Taper
The Federal Reserve said on Wednesday that it will begin reducing its monthly asset purchases this month, with plans to terminate them in 2022, signalling the start of its tightening cycle.
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U.S. Consumer Confidence Rises
Consumer confidence in the United States unexpectedly increased in October, indicating that economic development was picking up after a tumultuous third quarter, as concerns about high inflation were countered by strengthening labor market prospects.
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Inflation Concerns Pressure Stocks
Soaring gas prices, staff shortages, a lack of ships are putting the view that inflation will be transitory to the test. While central bankers are confident that inflation will fall, they are beginning to acknowledge that it may remain higher for longer.
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Hawkish Inflation Chorus
After last week's hawkish central bank chorus, ten-year Treasury rates are already up 8 basis points this week, leading a worldwide surge up in government borrowing costs.
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Beijing Is Preparing For Evergrande's Downfall
Evergrande, the Chinese property developer, has yet to confirm whether it would make interest payments on its US-dollar bond, a critical milestone that investors have been watching.
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Evergrande, The Tip Of The Iceberg?
China's most indebted property developer could fail to pay interests on its debt. The company might then default on its $ 305B in liabilities, sending shock waves through the Chinese real estate market.
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An Ugly September, Again?
Investors are preparing for more market volatility in the coming weeks even if equities hoover near fresh highs after seven months of straight gains.
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The Tech Boom Is Over?
Despite reporting stellar results for the second quarter, many tech companies were punished by investors for their more cautious forecasts. Major lockdown-winners are now warning that growth going forward might be pressured as consumers get back to their pre-pandemic lives.
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Higher Interest Rates? Bullard Says "Yes"
St. Louis Federal Reserve Bank President James Bullard thinks that the pandemic may have pushed the U.S. into an era of stronger growth and higher productivity. In contrast with the last decade of low growth, low productivity and low inflation.
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Bubbles? What Grantham Is Seeing
Right now, Grantham believes that the stimulus, vaccine optimism and the ongoing economic recovery have enabled investors to buy some time. Yet, serious issues such as rising interest rates, sustained inflation, labor shortages and exploding commodity prices could trigger the next fall.
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5.4% Inflation - Largest Jump In Almost 13 Years
In June, inflation continued its rapid ascend, rising at its fastest pace in nearly 13 years amid an ongoing increase in the cost of used vehicles, food and energy.
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Shortages Cool Down Growth
The Institute for Supply Management said on Tuesday that its non-manufacturing activity index has fallen to 60.1 while it stood at 64.0 in May. A reading above 50 indicates growth in the services sector, which accounts for two-thirds of U.S. economic activity.
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Rising Home Prices And Labour Shortages
With the stock market close to its all-time highs, the wealth effect is starting to form and retail investors are moving some of their gains from the stock market to the housing market.
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Where To Go From Here?
Yet for many money managers the last few months have felt like anything but a straightforward win. But how are markets responding?
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A Warm Summer For The Fed
Excess savings and the approach of the summer could lead consumers to direct their “revenge buying” on categories long shunned: alcohol, cosmetics and perfumes.
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Tapering Talks?
The Fed took a hawkish turn on Wednesday as they pencilled two potential rate hikes in 2023, sooner than previous estimates.
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Volatility Is Gone... According To Big Banks
Jamie Dimon, the CEO of JPMorgan Chase, said that trading revenue will drop to around $ 6B as the market volatility prompted by the pandemic fades away
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