29/06/2022 09:19

Global Markets

US stocks surrendered their gains of the last 2-days overnight as recession fears intensified following very weak consumer confidence data, this time around a fall in bond yields wasn’t enough to support equities. We’re still looking for a choppy advance towards the 4100 area for the S&P500 index but we remain conscious that the trends down and surprises usually unfold with the trend.

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28/06/2022 09:30

Global Indices

The US S&P500 had a quiet Monday compared to most of 2022 although encouragingly it largely held onto its recent gains. The trend remains clearly down but at the moment our preferred scenario is the index continues to bounce towards the 4150-4200 area which would provide an excellent risk/reward selling opportunity. The tech stocks are struggling to embrace the pullback in bond...

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27/06/2022 08:45

US S&P500 Index

The S&P500 popped over 3% on Friday night helping US stocks to their best gain in a month, the strength was triggered by short-term US bond yields falling the most in one week since May 2020 i.e. recession fears are now dominating. It’s amazing how bad news can be interpreted as good but when stocks have been hammered for over 6-months on rising interest rate fears anything, including a potential recession, that brings yields lower is being embraced.

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24/06/2022 09:21

Global Indices

The US market edged higher into the close this morning as recession concerns sent bond yields lower, it sounds almost bizarre that fears of economic contraction adds a tailwind for stocks but it illustrates the pressure which has been exerted on risk assets by rising interest rates. . The Energy & Materials Sectors were the standout underperformers in line with weakness in commodities with the Energy Sector falling another -3.75%.

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23/06/2022 09:01

Global Indices

The US market closed basically unchanged this morning after experiencing another fairly volatile session which saw the Dow swing around in a 600-point range before a lacklustre close. The Energy & Materials Sectors were the standout underperformers in line with weakness in commodities while the more defensive Healthcare, Real Estate and Utilities Sectors all rallied over 1%.

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22/06/2022 09:22

Global Markets

US stocks enjoyed a strong bounce overnight although the bounce hardly registers compared to the markets 25% pullback from its 2022 high. Our preferred scenario is we see the broad based S&P500 bounce back towards its June highs, or another 10% higher.

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20/06/2022 09:01

US S&P500 Index

As stocks continue to correct it’s important to maintain a degree of perspective as the fall in the US broad-based S&P500 now nudges 25% and it’s blown out to 34% for the growth/tech based NASDAQ:

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17/06/2022 09:49

US S&P500 recession led corrections

As stocks fall into the abyss we thought some perspective was required as the correction has now reached 24%, the median recession-led correction:

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17/06/2022 09:48

Global Indices

Overnight saw US stocks more than reverse the previous session’s gains increasing the current correction to 24%, recession fears are growing by the day. The bearish sentiment and momentum remain entrenched and it feels like a catalyst is required to steady the ship e.g. the Fed regaining investors’ confidence that they can balance inflation and economic health or something like a resolution in Ukraine.

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16/06/2022 09:45

Global Indices

US stocks enjoyed a rare positive day for June after tumbling 10% over the previous 5 sessions with Fed the knight in shining armour as their comments following the 0.75% rate rise calmed investors’ nerves i.e. they may have started hiking rates too late but they appear for now to have a handle on the issues at hand. Later in the week, we will see both the Bank of England & Japan announce their respective decisions on interest rates as the hiking party gets into full swing.

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