Finance Am

“Tighter monetary policy has begun to cool demand and reduce inflationary pressures, but our job is not yet done,” Williams said Monday in remarks prepared for a speech in Phoenix. “It will take time, but I am fully confident we will return to a sustained period of price stability.”

(+0.3%m/m and +0.4%m/m)

Equities reversed the previous day’s gains amid hawkish Fedspeak, solid US activity data, and high German inflation. The S&P500 is down 2.7%. Bond yields rose and fell, while currencies were rangebound amid quarter-end rebalancing.

The Bank of England surprised markets by announcing a temporary bond buying programme. Global bond yields fell in response, and risk sentiment rose. The S&P500 is up 2.1%, and the defensive US dollar fell sharply.

Risk sentiment improved further ahead of tonight’s important US inflation update. The S&P500 is up 1.0%, bond yields are slightly higher, and the defensive US dollar is lower.

US bond yields rose further amid hawkish Fedspeak, but that did not deter equity markets – the S&P500 closing up 1.5%. The risk-seeking mood hurt the USD.

Bond yields rose after the ECB hiked by 75bp. Equities weren’t too ruffled, though, the S&P500 up 0.7%, and currencies are little changed.

Bond yields retreated amid some paring of tightening expectations of the ECB and BoE, as well as less hawkish Fed commentary and a slump in oil prices. That helped US equities, the S&P500 up 1.9%, while the US dollar fell.

Bond yields extended a month-old rise amid hefty corporate bond issuance and US data showing robust services activity. That helped boost the USD to a fresh 20-year high, and unnerved equities – the S&P500 down 0.4%.

Markets were mostly contained overnight given the US holiday. The Eurostoxx 50 closed down 1,5% amid energy shortages and recession concerns, while S&P500 futures are up 0.3%. Bond yields rebounded, and the USD is slightly higher.

A lukewarm US jobs report helped push bond yields lower. The closure of a gas pipeline to Europe helped the USD recover and hurt equities, the S&P500 closing down 1.1%.

Solid US manufacturing data helped boost the US dollar – already supported by deteriorating risk sentiment and higher interest rates - to a 20-year high. Bond yields also rose, while the S&P500 is down 0.3%.

US equities extended the week’s decline further, the S&P500 down 0.8%. Bond yields remained elevated, while risk-sensitive currencies tested recent lows. There was little fresh news of note.

Solid US data updates on consumer sentiment and job openings raised Fed tightening expectations further. Bond yields rose, equities fell (S&P500 down 1.1%), and risk-sensitive currencies underperformed.

The effects of Fed Chair Powell’s hawkish speech on Friday lingered. The S&P500 is down 0.7% and bond yields are higher. The AUD and NZD firmed slightly though.

Fed Chair Powell’s hawkish speech boosted the US dollar and hurt equity sentiment, the S&P500 closing down 3.3%. Bond yields were volatile, with short maturities ending slightly higher.

Bond yields fell on the eve of the major central bank gathering at Jackson Hole. The US dollar fell slightly, and the S&P500 rose 1.4%.

Bond yields continued to rise ahead of tomorrow’s central bank gathering at Jackson Hole. Currencies were little changed, though, and the S&P500 is up 0.4%.

Disappointing US activity data hurt the US dollar and weighed on bond yields. The S&P500 is down 0.2%.

Negative sentiment towards equities intensified with fears of hawkish Fed signals later this week. The S&P500 is down 2.1%, and bond yields and the US dollar are higher.