Markets in 5 Charts – Week Ending 10/01/22

Weekly Headlines:

GBP/USD rate collapses to 1.03 on Monday. Gilt credit crunch due to new UK administrations “mini-budget” forces BoE back into QE on long end of curve. Russia annexes 4 regions of Ukraine. In US data releases, durable goods orders come in better than expect, down 0.2% MoM. New homes sales in AUG exceed expectations. Personal spending does as well. ISM Manufacturing PMI comes in at 52.8 in Sept, better than consensus, slightly below forecast.

Upcoming Data Releases:

Bond and equity markets are approaching double bottom levels, though momentum to the downside still strong, with the SP500 closing the quarter out at its lowest level in the last two years.

Dollar sees a bit of reversal in very extended EUR and GBP pairs, but broad trend is still to upside.

Commodity peak remains around this June.

Treasury curve shows a some twisting since last week.

High yield spreads widen.

Leave a Comment