Finance Am

Solid US industrial production data helped bond yields rise, while currencies and equities were little changed.

The combination of yesterday’s weak Chinese data and surprise rate cut, plus weak US data overnight, weighed on global bond yields. The defensive US dollar rose, while equities appeared to remain hopeful the Fed would slow down, the SP500 up 0.4%.

US equities continued to rise on expectations that inflation may have peaked and Fed tightening may slow, the S&P500 closing up 1.7% - a three-month high. Bond yields were mixed – short maturities rising slightly and long maturities falling slightly. Currencies were also mixed, the US dollar slightly higher overall.

US equities were contained, the S&P500 unchanged on the day. Currencies were also contained, the USD only slightly lower. Longer maturity bonds yields rose, though, perhaps speculating on the inflationary consequences of a Fed slowdown.

Eagerly awaited US inflation data was not as strong as feared, boosting equities (S&P500 +2.1%) and depressing bond yield and the US dollar. The AUD and NZD outperformed.

US interest rates rose slightly further after strong wage inflation data, and equities fell (S&P500 -0.4%). Currencies were mostly contained.

Markets pared the positive USD and bond yield reactions to Friday’s strong jobs data. The S&P500 is down 0.1% on the day.

US jobs data was much stronger than expected, and bond yields and the US dollar rose in response. Equities initially fell, but mostly recovered to see the S&P500 close down 0.2%.

Equities stalled as company earnings disappointed, the S&P500 down 0.1%. Bond yields fell slightly, weighing on the US dollar. The BoE hiked by 50bp but the GBP fell in response.

Solid US economic data and company earnings helped lift equities, the S&P500 up 1.6%. Bond yields and risk-sensitive currencies rose slightly.

Currency markets were defensive amid news of US officials visiting Taiwan, and the S&P500 is down 0.2%. Bond rose, though, after hawkish Fed comments.

A slightly risk-averse tone permeated most asset classes, Fed tightening and recession concerns the recurring themes. The S&P500 is down 0.6%, and longer bond yields are lower, but the defensive USD is also lower.

Stronger US inflation indicators initially helped the US dollar, but upbeat sentiment in equity markets (S&P500 +1.4%) reversed the move.

Disappointing US GDP data helped push bond yields lower, which encouraged equity markets (S&P500 +1.2%). The US dollar is slightly lower.

The Fed hiked by 75bp as expected, but signalled a slowdown in tightening pace. That lifted US equities (S&P500 +2.7%) and depressed the US dollar and bond yields.

US equity markets adopted a more risk averse posture ahead of tomorrow’s Fed decision, Walmart’s guidance reinforcing the mood. The S&P500 is down 1.2%, and the defensive US dollar is higher.

Markets appeared to be in waiting mode, with the Fed decision and key US data released later this week. The S&P500 is up 0.1%, bond yields are slightly higher following hawkish ECB comments, and the US dollar is slightly lower.

Global PMI data disappointed, weighing on sentiment. The S&P500 closed down 0.9% and bond yields fell. Currencies were mixed.

The ECB hiked by 50bp – more than expected, but bond yields in Europe and the US fell on recession concerns. The USD is only slightly lower, while the S&P500 is up 1.0%.

Sentiment was mixed. Italian political woes and Russian gas curtailment threats initially weighed, but upbeat US earnings reports helped a rebound. The S&&P500 is up 0.8%, bond yields are slightly higher, while the USD is slightly higher.