KBC Sunset Market Commentary 20/05/2022 via Trader Talent

Sunset Friday, May 20, 2022 Daily Market Overview Click here to read the PDF-version of this report. Markets • Coming straight from Investopedia: Bear market rally refers to a sharp, short-term rebound in share prices amid a longer-term bear market decline. It has an awful lot of similarities with the surges that we’ve seen over the past couple of days. Sometimes the rally is technically driven, like the one that started end of last week but ended abruptly on Wednesday. On other occasions, such as today, there’s a story that gets investors excited more than it should. The news came from China, …

KBC Sunrise Market Commentary 20/05/2022 via Trader Talent

Friday, 20 May 2022 Please  click here  to read the PDF version Markets •          European stock markets eventually lost 1.5% to 2% yesterday. Given WS’s performance on Wednesday evening, the damage remained “contained”. It’s nevertheless telling that stocks barely managed to show some form of intraday rebound following those steep opening losses. Market wires played that same tune. Central bankers are preparing to up the ante in both tackling inflation and re-anchoring inflation expectations even if it can cause harm to an already weakening economy. US stock markets ended a day fluctuating near the sell-off lows with daily losses of …

KBC Sunset Market Commentary 19/05/2022 via Trader Talent

Sunset Thursday, May 19, 2022 Daily Market Overview Click here to read the PDF-version of this report. Markets • With some good will, one could label this morning’s decline on Asian equity markets (mostly 1-2%) as ‘relatively modest’ given the WS sell-off. However, European trading soon made clear that this was no harbinger of dip-buyers stepping in. No buy-on-dips, even no sell-on-upticks, but simply further (stoploss) liquidation of cyclical, growth sensitive assets. European equities are losing about 2% (EuroStoxx50). US indices again decline between 0.5/1.5%. Even as the sell-off is caused by market fears that aggressive CB tightening risks undermining already weakening …

KBC Sunrise Market Commentary 19/05/2022 via Trader Talent

Thursday, 19 May 2022 Please  click here  to read the PDF version Markets •          A heavy selling wave on US stock markets eventually reversed intraday weakness on core bond markets while granting the dollar a push in the back. Main US indices ceded 3.6% (Dow) to 4.7% (Nasdaq). Retailers underperformed after weaker-than-expected earnings by amongst others Target. The CFO warned that fuel and freight costs will be $1bn higher than forecast this year, but that the company would absorb the costs rather than raise prices on shoppers. Walmart raised a more or less similar concern thought they already passed some …

KBC Sunset Market Commentary 18/05/2022 via Trader Talent

Sunset Wednesday, May 18, 2022 Daily Market Overview Click here to read the PDF-version of this report. Markets • ECB policy makers keep up the July rate hike rhetoric. ECB Muller, de Cos and Rehn were today’s chosen ones. Interestingly, more governors start talking about what could come next after an inaugural July move. ECB Rehn was most outspoken, suggesting broad agreement amongst ECB members that negative interest rates should end “relatively quickly”. Tomorrow’s Minutes could give us some more flavour on how fast the mindset amongst governors is changing these days. This week’s comments in any case point to the fact that …

KBC Sunrise Market Commentary 18/05/2022 via Trader Talent

Wednesday, 18 May 2022 Please  click here  to read the PDF version Markets •          Yesterday’s trading session turned out to be an interesting one. As on Monday, it started with a better risk mood in Europe with core bonds returning to sell-off mode after last week’s correction. UK Gilts initially underperformed following up on BoE governor Bailey’s testimony for a Commons Committee. He sounded much more combative against inflation than suggested by the May policy meeting. Around noon, ECB Knot raised the stakes in the central bank’s calling for >25 bps rate hikes if warranted by the data. His comments …

KBC Sunset Market Commentary 17/05/2022 via Trader Talent

Sunset Tuesday, May 17, 2022 Daily Market Overview Click here to read the PDF-version of this report. Markets • Market sentiment is subject to quite some wild swings. Last week, investors panicked that aggressive CB (especially Fed) rate hikes to address elevated (core) inflation would inevitably slow growth, triggering a sharp risk-off correction annex decline in core bond yields. Both factors currently are again moving the opposite way. Equities, European indices in particular, are rebounding. The Eurostoxx50 today gains another 1.4%. US indices open up to 1.9% higher (Nasdaq). We see this mainly as a corrective rebound. Recent eco data were mixed. Today, …

KBC Sunrise Market Commentary 17/05/2022 via Trader Talent

Tuesday, 17 May 2022 Please  click here  to read the PDF version Markets •          Dismal monthly Chinese eco data (April) only dented risk sentiment somewhat during Asian dealing. Calm returned in Europe, also following big swings last week. German Bunds ceded ground, underperforming US Treasuries. Dynamics changed again somewhat as US investors entered dealings. They preferred a more cautious approach with a very weak US Empire Manufacturing Survey and rising Covid-levels in NY sounding the alarm bell. Daily US yield changes eventually ranged between -4 bps (5-yr) and +1.9 bps (30-yr) with the belly of the curve outperforming the wings. …

KBC Sunset Market Commentary 16/05/2022 via Trader Talent

Sunset Monday, May 16, 2022 Daily Market Overview Click here to read the PDF-version of this report. Markets • “Expect a decisive June meeting, and an active summer”, French ECB governor Villeroy said today in a speech. He also stressed the central bank “carefully monitor(s) developments in the effective exchange rate, as a significant driver of imported inflation”, echoing comments made last week. It is an umpteenth indication for a rate hike lift-off in July. Last week, even president Lagarde hinted at such a move. Unfortunately, risk-off kept markets too busy to pick it up back then. But calm returned somewhat at the …

KBC Sunrise Market Commentary 16/05/2022 via Trader Talent

Monday, 16 May 2022 Please  click here  to read the PDF version Markets •          Markets ended a volatile week in peace last Friday. Main European and US equity indices recovered 2% and more though technical pictures remain heavy, screaming sell-the-uptick. The core bond corrective short squeeze grinded to a halt as well. German Bunds underperformed US Treasuries in the process. The US yield curve bear steepened with yields adding 2 bps (2-yr) to 8.3 bps (20-yr). The German curve moved in a similar way with yield rises varying between 5.7 bps (2-yr) and +10.7 bps (10- & 30-yr). Peripheral yield …