Tag : Wall Street

The hopes and uncertainty of a new era

A festive spirit has swept Wall Street as investors anticipate tax cuts for both households and companies, and to a lesser extent, greater spending, notably on infrastructure. In contrast, the bond market has slumped.

 

New monetary season

For the financial markets, summer’s end is often the occasion for deep-felt upheavals. This summer, investors left on vacation filled with trepidation about the economic impact of Brexit, about robust job creations in the US and how they might change monetary policy prospects, and about the outcome of European banks’ stress tests.

 

Oil and equity markets: peak correlation

Markets have been in the grip of China-related worries and ever lower oil prices. What made the triangular relationship between oil/Chinese equities/Wall Street even more ferocious were the negative feedback loops.

 

Concerns about Chinese growth weigh on European equities

When the Federal Open Market Committee at the end of its latest meeting two weeks ago decided not to hike the federal funds rate, this did not come as surprise. Indeed fixed income markets were only pricing in a small probability of a tightening. More concerning for investors was the comment that international developments had […]

 

The equity/bond correlation

What drives the correlation between equities and bonds?

 
 
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