Weekly Insights - Edition 115
This week: USD and global equities, global inflation pulse, commodities, housing market outlook, US small caps, frontier market equities...
Welcome to the Weekly Insights report! The weekly insights report presents some of the key findings from our institutional research service, providing an entrée experience (in terms of price and size).
Global Markets Monitor - notable developments
US equities in particular pushing higher, Nasdaq notching up further highs, growth beating value, cyclicals beating defensives. Risk pricing tightening up further as sentiment moves increasingly risk-on. On sectors, energy/materials stabilizing, consumer discretionaries pushing higher, defensive sectors (utilities, healthcare, staples) losing further ground.
Treasury yields are pulling back after an initial failed push towards the highs. Credit spreads/CDS pricing tightening further. US Dollar index breaking down, edging below the key 100 point mark. Commodities index slightly higher as crude oil rebounds. Elsewhere in commodities industrial metals consolidating, agri lower, gold/silver rebounding off short-term support.
Market Themes: USD and Global Equities...
-The DXY has made an initial breakdown vs a key support level.
-This is helpful for global ex-US equities.
--it also comes at a time where breadth across global equities has been improving, and cyclicals vs defensives ticking higher.
-Hence, further downside in the USD would be a key upside catalyst for global ex-US and global vs US rotation.