Insight
Bitcoin, correlation with equities rises
Cryptocurrencies’ long road to becoming part of investment portfolios also involves evaluating their correlations with other assets. With nearly 10 years of listing, let’s see how the correlation between bitcoin and equities is moving and what we can infer from…
Equity, European auto sector increasingly weak
The abrupt slowdown in 2024 is only part of the slow decline of the European auto sector, which has seen it gradually lose strength on the stock list over the past 10 years.
Gold and stock correlation, how has it changed in 10 years?
In the chart below we see the correlation between the S&P500 and bullion over the past 10 years. We first observe the prevalence of positive correlation from 2020 onward, but at the same time we note that the value of…
Luxury sector, the long crisis continues
The latest shingle came from French luxury giant Lvmh, which reported a 3 percent drop in revenues in the third quarter 2024, its first minus sign since the start of the pandemic. The luxury sector continues to experience a phase…
On the financial markets it is time for the first quarterly reports of 2023
In the past week, the first quarterly reports of 2023 for the US banking sector began to arrive. Rising rates are good for the profits of the big US giants. The continuation of the downward trend in US inflation, however,…
Signs of cooling from the U.S. labor market
In the past week the main theme for financial markets has been the U.S. labor market, with three data points hinting at a cooling of employment and for some, a risk of recession becoming more apparent. In February, job openings…
Awaiting labour market data, eyes on inflation
While waiting for the labour market data in the US, the markets focused on the signals coming from inflation, confirming their expectations of an end to monetary tightening now imminent. In the Eurozone, the situation remains more complex, with the…
Investors between inflation and banking system stability
Another week in which the themes of inflation and banking system stability remained the focus of investors’ attention. Concerns generated by Credit Suisse calmed on the announcement of the merger with UBS, but towards the end of the week new…
Banking sector fuels financial market volatility
The banking sector remained centre stage in the week that has just ended and everything suggests that the storyline in the financial markets will not change much in the coming days. The crisis and the rescue in extremis of Credit…
FED, labour market and Silicon Valley Bank shake up markets
A week of great volatility in the financial markets, which began with the statements by Fed Governor Powell on the possibility of further interest rate hikes and then continued with two ‘blows’ on Friday: on the one hand, the US…
Equity markets still focused on possible inflation developments
Yet another week in which equity markets focused on the possible inflation developments across and across the ocean. In the end, as far as equities were concerned, the more optimistic line prevailed, with the stock markets managing to close the…
Markets discount prolongation of the Fed’s restrictive policy
Stock markets paused in the face of macro news coming out of the US towards the end of the week. The PCE index, in fact, accelerated in January and at the same time consumption continued to grow. At this point,…
Financial markets question continuation of restrictive monetary policy
Inflation and interest rates are still at the centre of the financial markets’ thinking. The latest data from the US confirms that prices are falling, but the monthly trend in January indicates that the speed of inflation’s descent could be…
Financial markets, still doubtful between inflation and interest rates
In the past week, financial markets continued to question the future course of inflation and interest rates. Fed Governor Powell reiterated that there is still a long and winding road ahead to bring inflation back to 2%. And the latest…
ECB, Fed and BoE, new round of rate hikes
Last week was dominated by news on inflation in the Eurozone and the decisions of the world’s three major central banks. The ECB, FED and BoE decided for a further rise but at the same time sent encouraging messages about…
Quarterly earnings season takes centre stage in the markets
The quarterly earnings season was in full swing and the results of the major US companies drove the week on the stock markets to some extent, along with the now customary discussion on the evolution of monetary policy in the…
For stock markets first stop in 2023
Last week, equity markets marked the first halt in the recovery phase that had characterised this early 2023. In Europe, in addition to geopolitical uncertainties, the ECB’s still very cautious statements weighed heavily, as it does not seem willing to…
US inflation data raise pause expectations for FED
US inflation data continue to indicate a cooling of consumer prices, with the peak now seemingly behind us. Financial markets continue to believe that the Fed’s halt to hikes is imminent, even though very cautious comments are coming from members…
Optimism for financial markets in the first week of 2023
As the first week of 2023 draws to a close, financial markets are being carried away by a wave of optimism. Labour market data in the US and further reopenings in China are giving US indices their best daily performance…
Little news on financial markets in the last week of 2022
The last week of 2022 brings no big news to financial markets. Investor concerns continue to oscillate between inflation persistence and recession risk. Also complicating matters is the new wave of covid in China. On the interest rate front, Lagarde’s…
