What has happened This week, it’s the turn of the US to have a lie-in on Monday, and markets there are closed today for the Labor Day holiday. Really though, it’s just a brief respite before the pace picks up a gear, and there’s quite a lot to keep investors focused. The big event this...Read More

What has happened Monday saw markets initially start the week on the back foot. Whether it was softer Chinese retail sales and industrial production from Monday, the fall-out from weaker US Michigan consumer sentiment data from Friday, geopolitical risk fall-out from Afghanistan over the weekend, or concerns around the COVID delta variant in recent weeks...Read More

What has happened Markets trod water yesterday as investors awaited the CPI report tomorrow, with equity indices moving little on either side of the Atlantic. Yesterday’s US Job Openings and Labour Turnover Survey (JOLTS) data pointed to the continued difficulty facing employers in filling roles, with the figures showing a record high of 10.07m jobs...Read More

What has happened The US jobs report last week caused some volatility in markets on Friday, however last week still saw many equity markets hit all-time highs. With the employment report released, all eyes this will be on the US CPI number which, despite higher numbers being shrugged off in recent months, remains a critical...Read More

What has happened Risk assets fell lower at the end of last week as concerns over the delta variant came at the same time as the Federal Reserve spoke about the prospect of tapering asset purchases. Several cyclical and several growth sectors underperformed over the week in a sign of a broad risk off environment....Read More

What has happened Yesterday was another test of how deeply embedded the transitory inflation narrative was in the mind of market participants. The answer is ‘well embedded’ as risk assets shrugged off the latest US CPI print despite it beating to the upside. By the end of the day, Treasury yields were higher but this...Read More

What has happened Equities gained yesterday ahead of today’s important US CPI release. US 10-year Treasury yields also rose as risk appetite returns to markets after the short and sharp sell-off last Thursday. The $38bn Treasury auction helped this rise in yields but the auction saw reasonable demand from investors, reducing fears of a supply/demand...Read More

What has happened Inflation expectations retreated yet again yesterday with sovereign bond yields falling in sympathy. The important US 10-year Treasury yield is trading at 1.28% this morning. Now this trend has continued for over a week, investors are broadly joining one of two camps to explain the sudden shift. Secular Stagnation The secular stagnation...Read More

What has happened The rally in US Treasury bonds continued yesterday, with the US 10-year yield falling to under 1.35% by the close. There was no clear catalyst with several factors behind the moves, particularly volatility within the oil price and slightly weaker US survey data. Amidst these moves, growth areas such as technology performed...Read More

What has happened This week is getting off to a relatively slower start – US financial markets will be closed on Monday, observing the 4th July Independence Day holiday that fell on Sunday. That said, the US is still likely to set the tone for global markets for the week ahead, after the US jobs...Read More