Last week recap
It was a solid week for the US Dollar, which after persistent weakness, managed to see gains against the majority of its G10 counterparts.
Investors pivoted back into growth equities this past week. On Wall Street, the tech-heavy Nasdaq Composite (+1.85%) outperformed the value-oriented Dow Jones Industrial Average (-0.80%).
Fed Speech and Central Bank
Traders may be further accepting the Federal Reserve’s outlook for the economy, seeing near-term rising inflationary pressures as transitory.
All eyes are on the Fed on Wednesday. Chair Jerome Powell will almost surely be questioned about the latest CPI report and what the path for policy tapering could look like. The central bank will also release updated interest rate expectations.
For the Euro and Canadian Dollar, inflation data will be closely eyed from Germany and Canada respectively. The Australian Dollar could be vulnerable to RBA meeting minutes if the central bank reiterates its reluctance to hike rates until much further out.
Crude Oil Futures
WTI crude oil prices are hovering around the highest since October 2018, closing at a new high for this year so far. The commodity could see volatility if tensions between the US and Russia worsen.
- 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 […]