Charles-Henry Monchau

Chief Investment Officer


PDF


 
 

STOCKS SOARED, COMMODITIES & BONDS DIP

The main US equity indices erased much of the previous week’s losses on optimism that the Fed will be able to curb inflation without tipping the economy into a recession. Communication services, consumer discretionary, and IT sectors outperformed while Utilities underperformed. On the macro side, ISM services activity in June came in modestly above consensus estimates but indicated a continuing slowdown in growth. Friday’s US payrolls report showed employers added 372,000 nonfarm jobs in June, well above consensus expectations of around 270,000. YoY earnings grew by 5.1%, marking the 3rd monthly deceleration from March’s recent peak of 5.6%. On Wednesday, Fed June meeting minutes were hawkish, bolstering investors’ expectations for a higher terminal Fed funds rate, supporting higher yields across the curve. U.S. Treasury 10-year notes rose to roughly 3.10% on Friday. The 2-year/10-year segment of the Treasury yield curve inverted. In Europe, stocks advanced after 3 consecutive months of losses while Germany's trade balance showed a deficit — the 1st since 1991— as exports fell unexpectedly. Boris Johnson announced his intention to resign after more than 50 ministers and several Cabinet members stepped down in protest at his handling of a series of scandals that have rocked his administration. In Asia, Japan stocks gained while Chinese stocks eased as rising covid cases and elevated geopolitical tensions hurt sentiment. Global commodities were crushed again while the dollar and cryptos gained. 

 

Disclaimer

This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document.

Read More

Straight from the Desk

Syz the moment

Live feeds, charts, breaking stories, all day long.

Thinking out loud

Sign up for our weekly email highlighting the most popular posts.

Follow us

Thinking out loud

Investing with intelligence

Our latest research, commentary and market outlooks