Upcoming Data Releases:
Weekly Headlines:
Rate hikes move markets last week, as both the FED and BoE deliver 75 bps hikes. This was particularly unprecedented for the BoE. US employment comes in generally strong with JOLTs Job Openings, ADP Employment Change and Non Farm Payrolls all above expectations. Unemployment up to 3.7% on the other hand, slightly higher than the 3.6% expected. Earnings continues to be generally positive on the strength of lower expectations, with 85% of SP500 companies having reported at this point, 70% of which beat expectations on EPS. Individual companies continue to make headlines however, for instance Carvana has now declined 96% from its peak.
Flows:
Charts
Bond markets don’t seem to go anywhere over the work, but a bit of a rally in equities that is accompanied by commodity price inflation.
Sharp increases in energy and metal drive the commodity spike this week.
FED curve twists further as Wednesday’s hikes steepen the short end.
3 Mo -10 Yr spread remains negative.
High yield spreads kick a bit higher.
