Biden stumbles in his first debate, credit card interest rates soar in the US, and Hoka's dream ascent continues. Each week, the Syz investment team takes you through the last seven days in seven charts.

Amid a mix of cooling economic indicators and heightened electoral drama, the bond markets have entered a summer period marked by cautious optimism and strategic recalibrations, setting the stage for a quarter shaped by both policy expectations and political outcomes.

Most major U.S. stock indexes posted gains in a light news week during what seemed to be a bit of a lull in market activity ahead of Q2 earnings reports. Small-caps and Tech stocks performed best, with growth style outperforming value. The banking sector performed well as media reports said that the Fed is considering significantly lighter additional capital requirements for banks than regulators originally proposed in the wake of the regional banking crisis in March 2023. This good news was followed by the Fed’s announcement that all 31 of the large U.S. banks they stress tested remained above their minimum capital levels. The main macro number of the week was Core PCE inflation which showed that prices excluding food and energy rose 0.1% from April.

The SNB lowered its key rate once again, Microsoft, Nvidia and Apple continue to dominate and who holds France's sovereign debt? Each week, the Syz investment team takes you through the last seven days in seven charts.

The fixed income landscape quietly navigates through a sea of persistent economic and political uncertainties, marking a subdued yet tense beginning to the summer.

US stocks recorded modest gains over the shortened trading week (markets were closed on Wednesday), with the S&P 500 hitting 5,500 intraday for the 1st time ever. The week also saw modest signs of rotation in the market, with value stocks outperforming growth as Nvidia suffered its first down-week in two months. Friday was a so-called triple-witching day, with roughly USD 5.5 trillion in options related to indexes, stocks and ETFs expiring. The start of the week brought some evidence of US economy easing with retail sales signalling less discretionary spending. But data released later in the week suggested that the economy was stronger than indicated by retail sales.

The SNB has lowered its key rate again today, to 1.25%, after the previous 25bp cut decided in March. This decision appears grounded in a combination of three factors: inflation is on a stable and moderate trajectory, economic growth remains soft and excessive upward pressures on the CHF may arise during the summer.. With this decision, the SNB has likely completed its monetary policy recalibration and is unlikely to cut rates further this year.. Should European or global developments trigger volatility and upward pressures on the CHF, the SNB will probably resort to interventions on the FX market to manage the impact on the economy, rather than use the interest rate lever.

Executive Summary: The Bank of England's Monetary Policy Committee meets on June 20th with expectations set for maintaining the current Bank Rate amid recent economic and inflationary developments. Despite a strong initial performance in June, the UK government bonds have stagnated since the last BOE meeting. • Watch This: The focus is on the number of MPC members supporting a rate cut (currently 2 out of 9) and any forward guidance regarding future rate adjustments. • Market Strategy: Preference for the short end over the back end of the UK government yield curve continues, as GBP strengthens amidst differing economic dynamics between the US and UK.

The Fed remains cautious, wanting more data before deciding on a rate cut, while newly released US CPI data provided relief for the markets and the rise of Rassemblement National result in snap elections in France. Each week, the Syz investment team takes you through the last seven days in seven charts.

Last week could have wreaked havoc on the U.S. bond market with CPI/PPI data and the Fed's decisions, but inflationary pressures are easing and the job market appears to be normalizing—a perfect mix for bond performance. However, Europe's outlook is darkening with a snap election in France.