Bassanese Bites Archives | BetaShares

Buy the fact

Week in review

Global markets shrugged off a higher than expected U.S. consumer price index (CPI) result, with U.S. 10-year bond yields edging lower and equities pushing higher. This likely reflected an element of “sell the rumour, buy the fact”, given fears of a high inflation outcome had lingered for a while.

Read more

CPI taper test

Global markets
Global equities ended last week up modestly, and appear to be back in the “bad news is good news” frame of mind. Stronger than expected U.S. manufacturing and service sector indices set markets back early last week, though stocks then rallied strongly on Friday following a (still strong, but) weaker than expected U.S.

Read more

Relaxed & comfortable

Global markets
Global equities managed to post positive returns last week – after two weekly declines – even in the face of a modestly higher than expected U.S. consumer price inflation result. Indeed, annual growth in the U.S. core private consumption expenditure deflator (PCED) came in at 3.1% in April, compared to the market estimate of 2.9% –

Read more

Taper watch

Global markets
Inflation and interest rates fears caused global equities to buckle last week as commodity prices marched higher and U.S. consumer price inflation surprised on the upside. By week’s end, however, conditions had settled down somewhat – with investors prepared to back the view that the current post-COVID lift in price pressure will be transitory and should not therefore change the U.S.

Read more

Bad news is good

Global markets
It was a case of ‘bad news is good news’ again in global markets last week, with equities enjoying a boost from weaker than expected U.S. economic data which appeared to reduce the risk of high inflation and interest rates any time soon. The first soft data point earlier in the week was the ISM U.S.

Read more

Buyer exhaustion

Global markets
Global equities struggled to move higher last week even in the face of good economic, policy and earnings news – suggesting an element of ‘buyer’s exhaustion’ has perhaps crept into the market. Is all the good news now priced into the market? Is there anyone still on the sidelines waiting to buy?

Read more

Sweet spot

Global markets
Another week, another rise in global equities it seems – helped on by ongoing solid economic growth and, most recently, a reassuring pullback in global bond yields. Indeed, last week’s much anticipated U.S. consumer price index report came and went without a murmur from the bond market. While annual growth in headline consumer prices pushed above 2% as expected (reflecting the rebound in oil prices over the year),

Read more

Yields stabilise

Global markets
Solid U.S. economic growth indicators, along with dovish Fed comments, continued to support global equities last week – helped by a further stabilisation in bond yields despite simmering U.S. inflation concerns.  The U.S. ISM service sector index soared to 63.7 in March (from a still strong but weather-affected 55.3 in February),

Read more

USA! USA!

Note: Data as at the end of a holiday shortened week, Thursday 1 April.
Global markets
Global equities pushed on to new record highs last week as bond yields remained relatively well contained despite ongoing strong U.S. economic news. After harsh winter weather held back sections of the economy in February,

Read more

Rates relief

Global markets
Despite new lockdowns in Germany, risk-on sentiment improved last week thanks to a stablisation in bond yields, U.S. inflation relief, further progress in the U.S. vaccine rollout, and new freedoms for U.S. banks to pay dividends and buy back stock.
U.S. Fed chair Powell spoke several times last week and continued to reiterate that while inflation may pick up in the next few months (for technical reasons as explained last week) it should slow back down again thereafter and the Fed still has no intention of tightening policy for some time.

Read more