Finance Am

The US dollar broke a three-day losing streak after early US mid-term election results did not produce the major changes expected. Bond yields were mixed, and the S&P500 is down 1.7%.

The US dollar fell further ahead of the US mid-term election results, bond yields also falling. The S&P500 was up around 1% for much of the session, but has fallen to flat on the day.

The US dollar fell further amid continuing speculation that China will relax its Covid policies. Bond yields rose, while the S&P500 is up 0.4%.

The US dollar fell sharply in the wake of a mixed US jobs report and further speculation that China would relax its Covid policies. The S&P500 closed up 1.4%, commodities rose sharply, and short-term bond yields fell slightly.

The Bank of England delivered a dovish hike, capping bond yields and helping lift the US dollar further. The S&P500 is down 0.4%.

The Fed hiked by 75bp, as was widely expected, the statement hinting at a slower pace ahead, but Powell’s press conference more hawkish. Bond yields and the US dollar fell and rose in response, while equities appeared disappointed with Powell’s tone, the S&P500 down 0.8%.

Bond yields and the US dollar bounced sharply following strong US economic data, reversing Asian session declines. The S&P500 is down 0.4%.

Bond yields rose further ahead of this week’s important Fed meeting, with stronger inflation data in the Eurozone contributing. The US dollar also rose, while equities fell, the S&P500 down 0.5%.

Asset classes were mixed. Equities were helped by company earnings, the S&P500 closing up 2.5%. Bond yields rose amid elevated readings for US inflation indicators. The US dollar rose slightly.

Bond yields fell after the ECB accompanied its 75bp rate hike with less hawkish guidance. That, and some solid US GDP data, lifted the US dollar. The S&P500 is down 0.4%.

Bond yields and the US dollar fell amid continued speculation that the Fed will slow its tightening pace, encouraged by the Bank of Canada’s decision to hike by a smaller than expected 50bp increment. Equities are lower, though, the S&P500 down 0.8%.

Risk sentiment improved further amid a slew of weaker US economic data which supports the case for a Fed slowdown. The S&P500 is up 1.5% and at a one-month high, and bond yields and the US dollar are lower.

Risk sentiment improved further amid speculation the Fed will slow its tightening cycle, the S&P500 up 1.4%. Bond yields rose, though, and risk sensitive currencies fell.

Bond yields rose amid hawkish comments from Fed members. Equity markets fell (S&P500 -0.7%), while currencies were mixed.

Bond yields rose as Fed rate expectations were increased, hurting equity market sentiment (S&P500 -0.6%) and lifting the US dollar.

Equity market sentiment remained upbeat in anticipation of solid company earnings reports, the S&P500 up 0.5%, but currencies and bonds were contained.

Risk sentiment improved without an obvious catalyst, the S&P500 up 2.7%. The US dollar fell, and bond yields rebounded.

Stronger US economic data prompted markets to push Fed rate expectations higher. Bond yields and the US dollar rose, while equities fell, the S&P500 closing down 2.4%.

Markets initially reacted to stronger than expected US inflation data, but the reactions were later curiously retraced. The S&P500 is now up 2.7%, and the US dollar is lower, although short maturity bond yields have retained most of their gains.

Markets were in a holding pattern ahead of tonight’s key US inflation data. The S&P500 is down just 0.1%, and bond yields and most currencies are little changed.