Finance Am

Markets were contained ahead of the FOMC minutes, with the USD and equities slightly higher, bond yields slightly lower. Following the minutes (just released), bond yields and the USD have risen.

Bond yields rose on concerns the Fed may need to tighten further than previously thought, fuelled overnight by stronger activity data. That supported the US dollar, but hurt equities, the S&P500 down 1.7%.

Markets were subdued during the liquidity-thinned US holiday. Bond yields rose slightly, as did the AUD and NZD.

Amid little major news flow, the US dollar and bond yields fell, and the S&P500 closed down 0.3%.

Strong US PPI data and hawkish Fedspeak pushed bond yields slightly higher and equities slightly lower, the S&P500 down 0.4%. Currencies pared losses for little net change.

Strong US retail sales data pushed bond yields and the US dollar higher. Equities were only briefly ruffled, the S&P500 currently unchanged.

Markets reacted to the US CPI inflation data by pushing bond yields higher. Currencies were less sensitive, and equities weren’t too ruffled, the S&P500 down 0.1%.

Ahead of key US data, equities rose (S&P500 up 1.1%) and the US dollar fell slightly. Bond yields were little changed.

Fed tightening expectations helped push bond yields and the USD higher. US inflation expectations remained elevated.

Previous strong US jobs data and hawkish Fedspeak continued to resonate, pushing bond yields higher. The S&P500 is down 0.5%, while currencies were mixed. Sweden’s central bank delivered a hawkish hike.

Hawkish Fedspeak weighed on risk sentiment, the S&P500 down 0.8%, and the AUD slightly lower.

Fed chair Powell’s comments were no more hawkish than last week’s, causing a short-lived reaction in bond yields and the US dollar (lower) and equities (higher). Currently, the S&P500 is up 0.6%.

The reaction to Friday’s strong US jobs data extended further, rekindling Fed rate hike expectations. Bond yields and the US dollar are higher, while the S&P500 is down 0.5%.

The ECB and BoE both hiked by 50bp, but markets interpreted their cycles are near an end. Bond yields fell and the US dollar rose. The S&P500 is up 0.9%.

The US Federal Reserve raised its policy rate by 25bp to 4.6%, as was expected, and signalled “a couple more rate hikes” before pausing. Bond yields and the US dollar fell in response, while the S&P500 pared earlier losses to be up 0.8%. Prior to the Fed decision, US economic data was mixed, leaving equities, bond yields and the US dollar slightly lower.

Cooler US economic data helped lift equities, the S&P500 up 1.0%. The US dollar and bond yields fell slightly.

Risk sentiment soured, the S&P500 down 0.9%, despite little major news of note. The defensive US dollar and bond yields rose slightly.

Risk sentiment remained modestly upbeat, the S&P500 closing up 0.3%. Currencies were contained, while bond yields rose and fell for little net change.

US economic data was solid, helping equity sentiment, the S&P500 up 0.6%. The US dollar and bond yields rose slightly.

Equity sentiment continued to falter, the S&P500 down 0.3%. Currencies and bond yields were mixed. The Bank of Canada hiked but signalled a pause.