Rumors of a possible agreement in the war
Week of strong rebounds in the American stock markets: the S&P500 and the Nasdaq rise 6.18% and 8.18%, respectively. The rumor of an agreement in the war improves the mood of the markets and the indices manage to recover 50% of the annual fall. Europe also benefits from this improvement, with the main indices rising above 3%. The FTSE 100 turns positive for the year.
In Asia, we have a significant rise in the Nikkei and a new drop in China, which continues to be one of the worst stock markets so far this year. In interest rates we are seeing new rises in the main geographies. The profitability of the 10-year American is consolidated above 2%.
In the raw materials negative performance of gold (-3.4%) and Brent (-4%). Despite this, oil is up almost 40% so far this year. In currencies there is a slight weakness of the dollar against European currencies and increases against the yen and the yuan. The bitcoin closes a positive week with a rise of 7.8%, closing above 41,000 USD.
Federal Reserve meeting
The latest meeting of the Federal Reserve brings relevant news.
The main measure adopted is the rise in the intervention rate to 0.5% and anticipates further rises in the near future. It also announces the reduction of purchases in the assets of the Treasury and in the debt and the mortgage securitization of agencies. His forecast is that inflation will continue to rise and affect future growth.
For this reason, as we see in the summary on the economic projections
, the votes of the 16 members of the Board of Governors are in favor of rate hikes close to 2% in this same year and additional in 2023, in the range between 2%-3%.
This is all more bad news for fixed income. If it continues in the same trend, it will deteriorate corporate profits and they will be for equities.
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