Markets in 5 Charts – Week Ending 1/20/23

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Weekly Headlines:

World Economic Forum took place in Davos over this week. US Treasury begins taking special measures to prevent debt default after debt ceiling is hit. There is bipartisan agreement to the US will not default, however it seems like there will be negotiations on the matter. In data releases, Chinese demographic data shows a shrinking population for the first time in decades. US retail sales data shows faster slowdown than expected.

Flows:

Charts

Bonds and equities diverge at the end of the week, with equities looking to break out of recent range while bonds give up most of the weeks gains.

Bond preference has shifted from broader international products to EM and US IG.

Metals surpass energy and agricultural price inflation.

Gold continues cruise well into six month highs.

Yield curve inversion continues to worsen, but more incrementally this week.

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