Week of market consolidation: Strong increases from the previous week.
The American stock markets present: the S&P 500 and the Nasdaq rise 1.79% and 1.98%, respectively. The rebound in recent weeks leaves the annual fall in the S&P at -4.7%. In Europe, negative behavior in Germany and Spain and positive in England, which remains one of the few large positive markets in the year. In Asia, the rise in Japan leaves the annual drop in the Nikkei at -2.2% and a new fall in China, which has become the worst market.
Large rise in 10-year interest rates in all geographies. The US 10-year is close to 2.5% and the German has gone from negative to 0.589% in just 15 days. The trend seems clearly bullish due to inflation and the intention of central banks to adjust rates.
In the commodity market a new rise in Brent after the drone attack on a facility of the Saudi oil company Aramco in the city of Jeddah. Gold rose 1.9%. In the foreign exchange market, slight recovery of the USD. Bitcoin registers a rise of 6.1% in the week.
Accelerated movement in interest rates
The US interest rate market is on an upward trend from its lows in the second quarter of 2020.
The first acceleration was during that same year, shortly after the Federal Reserve approved a series of exceptional monetary measures never before seen in the history of the institution. In this context, contrary to the crisis situation in which it was living due to the
pand
The first acceleration was during that same year, shortly after the Federal Reserve approved a series of exceptional monetary measures never seen before in the institution’s history. In this context, contrary to the crisis situation in which we lived due to the
pand
We are experiencing the second strong rebound now. Since March 2022, the FED’s statements have been more aggressive than expected.
expected, both in the rise in rates and in the progressive withdrawal of purchases of debt assets.
In the graph we see the yield on the 10-year Treasury bond, which in just one month has gone from 1.75% to 2.50%. This has caused a fall
additional accelerated rate in fixed income funds.
Despite these very important corrections, we still do not think we should increase positions in this asset.
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