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Equities Climb on Positive Technicals with Investors Embracing the Dipđ
On the equity side, a series of positive technicals (SPX regained its 200-day MA) and rebounds off oversold readings are breathing life into the stock rally, with investors likely in a "buy-the-dip" mode with a lack of negative catalysts in the horizon. With the Fed uncertainty in decline at least until early 2023, supply refunding concerns pushed out by at least another quarter, company earnings coming in 'OK' for the most part, and a lack of negative contagion from the on-going geopolitical conflicts (so far), risk markets are likely to stay on the strong side in the immediate future. Furthermore, while weakening consumer demand is starting to surface from the likes of poor credit card spending data, as well as from management guidance, investors are likely to overlook them in the meantime given the positive impulse from expectations of Fed eases in the coming year. A boring market might be a good market in the meantime.
#BondSupply #CorporateEarnings #GeopoliticalConflicts #ConsumerDemand #Macro
On the equity side, a series of positive technicals (SPX regained its 200-day MA) and rebounds off oversold readings are breathing life into the stock rally, with investors likely in a "buy-the-dip" mode with a lack of negative catalysts in the horizon. With the Fed uncertainty in decline at least until early 2023, supply refunding concerns pushed out by at least another quarter, company earnings coming in 'OK' for the most part, and a lack of negative contagion from the on-going geopolitical conflicts (so far), risk markets are likely to stay on the strong side in the immediate future. Furthermore, while weakening consumer demand is starting to surface from the likes of poor credit card spending data, as well as from management guidance, investors are likely to overlook them in the meantime given the positive impulse from expectations of Fed eases in the coming year. A boring market might be a good market in the meantime.
#BondSupply #CorporateEarnings #GeopoliticalConflicts #ConsumerDemand #Macro
âĄïžđșđž #Macro USA. Consumer Inflation (#CPI ) Data for August is here!
- Month-over-month: 0.2% (in line with projections)
- Year-over-year: 2.5% (matching forecasts, down from 2.9%)
The cooling year-over-year inflation suggests that the Fed's tightening measures are working, bringing some relief to consumers and businesses. However, steady month-over-month data indicates inflation isn't completely under control yet.
Impact on the market:
- **Stocks:** Likely to rally as cooling inflation could signal a pause in future rate hikes, which would be bullish for equities. đ
- **Bonds:** Bond yields might see some downward pressure as the market anticipates fewer rate hikes, making bonds more attractive. đŒ
- **Crypto:** Positive sentiment could spill over into risk assets like Bitcoin, with reduced inflation easing concerns about aggressive monetary tightening. đĄ
Whatâs your take? Will the Fed hold steady, or is another rate hike around the corner?
- Month-over-month: 0.2% (in line with projections)
- Year-over-year: 2.5% (matching forecasts, down from 2.9%)
The cooling year-over-year inflation suggests that the Fed's tightening measures are working, bringing some relief to consumers and businesses. However, steady month-over-month data indicates inflation isn't completely under control yet.
Impact on the market:
- **Stocks:** Likely to rally as cooling inflation could signal a pause in future rate hikes, which would be bullish for equities. đ
- **Bonds:** Bond yields might see some downward pressure as the market anticipates fewer rate hikes, making bonds more attractive. đŒ
- **Crypto:** Positive sentiment could spill over into risk assets like Bitcoin, with reduced inflation easing concerns about aggressive monetary tightening. đĄ
Whatâs your take? Will the Fed hold steady, or is another rate hike around the corner?
