Holly Thompson
-
The perfect storm for bonds and equities
Macron’s snap election call, lower U.S inflation, and fewer Fed rate cuts sparked market volatility. U.S bond yields dropped, equities hit highs, and European markets fell. EUR/USD volatility surged, widening the French-German yield spread.
-
Risk-on fades as US jobs above all forecast
Equity benchmarks in the US and Europe hit record highs before the non-farm report. The surprising 272k job increase reversed US treasury yield declines and reduced rate cut expectations.
-
Big week for Europe as US yields rise
Europe faces a challenging week as rising US bond yields increase market volatility. The Stoxx 600 fell for a second week, pressured by these yields. Meanwhile, the EU must decide on imposing tariffs on Chinese electric vehicles, adding to geopolitical tensions.
-
Fed cuts less likely as US remains exceptional
The US dollar rebounded from six-week lows with strong economic data. The British pound rose after UK PM Rishi Sunak called a snap election. NZD/USD spiked briefly on RBNZ’s rate hike signal.
-
Equities at record highs as US inflation descends
US consumer prices fell unexpectedly in April, while import prices surged by 0.9%. Retail sales and industrial production stagnated, signaling a slower Q2 start. German investor sentiment hit a high, and China’s recovery remains manufacturing-driven. The US dollar weakened despite hawkish Fed comments.
-
Rise in US jobless claims overshadows dovish BoE
A strong earnings season and soft US data, supporting the case for interest rate cuts, gave investors the green light to switch into a risk-on mode. Pro-cyclical currencies cheered.