Beyond Bulls & Bears

Notes from the Trading Desk – Europe
Equity

Notes from the Trading Desk – Europe

Equities in Europe treaded water ahead of the European Central Bank (ECB) meeting this week, where any hints of tapering will be closely observed. The spread of the Delta variant continues to weigh on sentiment,

Notes from the Trading Desk – Europe
Equity

Notes from the Trading Desk – Europe

After a steady grind higher through the summer, global equities stumbled last week as several headwinds weighed on sentiment. Concerns over the negative impact of Chinese regulatory crackdowns hit a number of sectors, the Federal Reserve’s July meeting minutes and rising concerns over the spread of the Delta COVID-19 variant were all cited as reasons for a pullback.

Notes from the Trading Desk – Europe
Equity

Notes from the Trading Desk – Europe

It seems the adage of “never be short a quiet market” held true recently as European equities saw their tenth consecutive all-time high, their longest run of record high sessions since 1990.

Notes from the Trading Desk – Europe
Equity

Notes from the Trading Desk – Europe

Global equities traded weaker overall last week with much of the focus on the latest round of corporate earnings releases, which look good so far and were surprisingly positive. It was also a week where China widened its regulatory net on big technology companies, which weighed on market sentiment.

Notes from the Trading Desk – Europe
Equity

Notes from the Trading Desk – Europe

Equity markets in the United States and Europe paused for breath last week as familiar themes dominated. US Federal Reserve (Fed) Chair Jerome Powell’s testimony at Congress was in focus and concerns over the COVID-19 Delta variant remained front and centre.

Notes from the Trading Desk – Europe
Equity

Notes from the Trading Desk – Europe

Even though we saw some selling pressure last week, it’s important to keep the moves in context. ]. With earnings season looming large, some profit-taking in often-crowded positions is not too surprising. We expect market volatility around commentary to be a key theme in the second half of this year.

Notes from the Trading Desk—Europe
Equity

Notes from the Trading Desk—Europe

The European economy is recovering fast from the COVID-19 recession. The relaxation in COVID-related restrictions has resulted in sharp growth in both services and manufacturing. The reflation trade appeared to be re-emerging.

Notes from the Trading Desk – Europe
Equity

Notes from the Trading Desk – Europe

The primary focus for investors last week was the Fed meeting and the market impact thereafter. As expected, the Fed kept rates unchanged, but id give new guidance for their expected path of rate hikes (the “dot plot”) and revised their inflation expectations.

Notes from the Trading Desk – Europe
Equity

Notes from the Trading Desk – Europe

Given the presence of some temporary factors driving inflation data, the markets are telling us investors are happy to run with the Federal Reserve’s narrative that inflationary pressures are transitory. We see this view reflected across asset classes.

Notes from the Trading Desk – Europe
Equity

Notes from the Trading Desk – Europe

Last week was unsteady for equity markets with much of the focus on inflation data out of the United States and China. A further easing of restrictions in parts of the UK and Europe will help build the recovery.

Notes from the Trading Desk—Europe
Equity

Notes from the Trading Desk—Europe

Joe Biden’s US presidential election victory was confirmed over the weekend, yet the likelihood that Congress will be split—with Republicans in control of the Senate—has buoyed markets.

Notes From the Trading Desk – Europe
Equity

Notes From the Trading Desk – Europe

Concerns over trade and UK politics have bubbled away throughout the past year and with progress in both of these areas last week, as well as benign central bank developments, markets received a welcome boost. European and US markets both hit record highs last week.