Global market sentiment remained rosy this past week. On Wall Street, the Dow Jones, S&P 500, and Nasdaq Composite climbed about 1.5%, 1.7%, and 2.1% respectively.
European equities also shined, with the FTSE 100 and DAX closing 2.69% and 1.95% respectively. In Asia, the Hang Seng outperformed, rising 5.69%. Japan’s Nikkei 225 increased 3.64%.
With the cheery mood, haven-linked currencies underperformed. These included the US Dollar and Japanese Yen. Rising Treasury yields meant that USD/JPY touched its highest since late 2018.
The sentiment-linked Australian and New Zealand Dollars shined. Taking a look at commodities, crude oil prices continued gaining, with WTI prices touching the highest since October 2014.
The surge in oil continues to reflect a global supply crunch. China has resorted to releasing Australian coal from storage after an unofficial ban on imports amid geopolitical tensions. Meanwhile, solid corporate earnings thus far have likely been bolstering sentiment. The US announced it will open international travel for vaccinated people on November 8th.
Front-end bond yields are on the rise, especially in the United States. FOMC minutes and CPI data this past week highlighted rising shelter costs, which could remain sticky amid supply shortages with elevated construction and labor costs. Data on this front will cross the wires this week. Rising returns on safer bond yields may continue slowly undermining riskier assets like stocks.
The week starts off with New Zealand CPI data and Chinese third-quarter GDP. Given that the RBNZ is probably the most hawkish developed central bank, NZD/USD could see some volatility. Being the world’s second-largest economy, a slowdown in China risks reverberating outwards, especially following issues in its real estate market. Bitcoin nears its record high after the SEC paved a path for futures trading of the cryptocurrency.
- Market Week Ahead: Nasdaq 100, Fed, Tech Earnings, Volatility ReturnsGlobal risk appetite sharply deteriorated this past week as the Volatility Index (VIX), which is the market’s preferred ‘fear gauge, closed at its highest since early December. The most immediate item threatening market sentiment is a hawkish Federal Reserve. A combination of quantitative tightening and rate hike bets are bringing up front-end Treasury yields, or […]
- Markets to Watch This Week: Nasdaq 100, US Dollar,BoJ and moreThere continued to be hesitancy in global market sentiment. Wall Street started off 2022 on a sour note, though the second week was less painful. Nasdaq 100 futures were little changed. This is as Dow Jones and S&P 500 futures declined about 0.8% and 0.3% respectively. European and Asia-Pacific benchmark stock indices did not fare any better. Global monetary policy tightening […]
- Market Week Ahead: Inflation Data, Bitcoin, Powell Testimony, and moreEven though market sentiment started off 2022 on a sour note, there were clear winners and losers on Wall Street. Dow Jones futures declined about 0.1% this past week, while the tech-heavy Nasdaq 100 sank about 4.35% in the worst performance since February. The coming week will bring closely followed inflation figures, while Federal Reserve Chair Jerome Powell […]
- Market Week Ahead: Monetary Policy Meeting, Retail Sales, etc.The broad US dollar remained under pressure on Friday and will end this week on a bearish note as investors digest the Bank of England’s (BOE) unexpected interest rate hike and the European Central Bank’s (ECB) shift to a more hawkish attitude. Looking ahead to the coming week, the series of retail sales, the minutes of the […]
- Markets Week Ahead: Nasdaq 100, US Dollar, Gold, Euro, British Pound, Fed and moreMarket mood recovered this past week around the world. On Wall Street, the Nasdaq 100 and S&P 500 gained 3.82% and 3.65% respectively. Across the Atlantic, the Euro Stoxx 50 and FTSE 100 climbed 2.95% and 2.62% respectively. In the Asia-Pacific region, the Nikkei 225 climbed 0.89% while Australia’s ASX 200 jumped 4.05%. Volatility was crushed, with the VIX market ‘fear gauge’ sinking about 39% in the worst week […]