Markets in 5 Charts – Week Ending 12/16/22

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Weekly Headlines:

This week was dominated by central bank policy. Weeks sets up on another downside inflation surprise in the US, with annual core inflation coming in at 6% and total inflation at 7.1%. Market euphoria was short-lived however, as a the FED reiterated its commitment to keep tightening and warning of economic pain ahead, followed by similar messaging from the ECB on Thursday. In other news, FTX arrested in the Bahamas, the ECB becomes embroiled in a bribery scandal, and Goldman Sachs prepares to cut 8% of its workforce.

Flows:

And an extra from the FMS:

Charts

Market seem to be turning over after the last inflation report and FED hike of the year in the US.

Equity reversal more apparent in regional lens.

Dollar finds some footing.

3mo – 10yr spread worsens to new lows.

Top vs bottom of IG yields converge strongly.

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