Beyond Bulls & Bears

Notes from the Trading Desk – Europe
Equity

Notes from the Trading Desk – Europe

The first half of 2022 brings some European political events to keep an eye on, namely appointment of a new Italian president and French presidential elections. A return to a more combative Italian government could create tensions within the European Union—another potential headwind for equity markets.

Notes from the Trading Desk – Europe
Equity

Notes from the Trading Desk – Europe

News of the COVID-19 variant that emerged in South Africa (named Omicron) shook sentiment late last week prompting sharp declines. Looking ahead, it will be important to watch how this latest COVID news feeds into central bank thinking, with money markets already repriced the timeline for potential interest rate hikes further out.

Notes from the Trading Desk – Europe
Equity

Notes from the Trading Desk – Europe

Central bank action continues this week, with the Reserve Bank of Australia (Tuesday), Federal Reserve (Wednesday), Norges Bank and Bank of England (Thursday) all meeting. The Fed is expected to announce the start of tapering, including key details on the pace, timing and composition of its plan to reduce asset purchases.

Notes from the Trading Desk – Europe
Equity

Notes from the Trading Desk – Europe

It was encouraging to see equity markets stabilise last week, but as we move towards the fourth quarter, it does feel like investor sentiment is somewhat brittle. We did see retail investors stepping in and "buying the dip" last week. This remains an important market dynamic to watch.