FED minutes and PMI surveys support markets
Last Update: 26/12/2024
The week just gone was marked by the release of the minutes of the FED and ECB meetings. A reading of these documents seems to indicate a reduction in the pace of interest rate rises in the coming months, with the FED talking explicitly about the risk of recession. The November PMI data, however, show a stabilising situation, almost as if the worst is behind us. The markets responded to all this with renewed optimism, both for equities and bonds. In the background, however, the effects of the FTX crisis and the new COVID problem (including protests) in China still remain to be interpreted.
In the past week, 82% of the instruments and indices used for our analyses recorded a positive change. 17% experienced a negative change.
Analysing by macroclass, 87% of the equity instruments and indices considered in our analyses recorded a positive weekly change. ù
84% of the bond instruments and 56% of the other asset classes used in our analyses. The rises in equities and bonds are the result of the release of the FED minutes, which suggest a reduction in the pace of interest rate hikes in the coming months.
Improving valuations in the past week accounted for 9% of the total. In the previous week, upwardly adjusted valuations were 56% of the total.
Among the equity analyses, improving valuations accounted for 9% of the total.
Among the analyses for bonds, 19% of the total were upgraded valuations.
Among analyses relating to other asset classes, improving valuations accounted for 12% of the total. Sentiment, currency and commodity analyses are included in this section.
Of the valuations, 13 per cent were above average in the short term. 39% were above the long-term average of valuations.
