Upcoming Data Releases:
Weekly Headlines:
US midterms election results that have finalized tend to show a disappointing outcome for Republicans. The Senate is split with 2 seats still contested, giving the Democrats an opportunity to increase Senate control. House skews Republican, with 19 races still undecided, but Republican majority likely to be smaller than hoped for. Death of FED pivot narrative was short-lived as US inflation comes in below expectations at 7.7%. Core inflation as well below expectations at 6.3%. Markets rocket up following the news. China further reduces Covid quarantine length for travelers, to 8 days. FTX, the second largest crypto exchange by volume files for bankruptcy, client funds are currently being looted in alleged hack.
Flows:
Charts
Large gains in bond and equity markets after Thursday’s US inflation numbers.
Dollar weakness reflective of a pause in hikes as well.
In commodities, energy continues to moderate while metals and lumber see higher demand. Precious metals a driver of metal gains as well as industrial metals.
Short end and middle of the FED curve come down the most on the week.
Curve inversions worsen on this weeks shift.
BONUS: Crypto legs lower on events surrounding FTX implosion.
