Commodities | Equities | Global
Markets to Watch This Week: European Markets and Commodities
- By Bilal Hafeez
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- 1 min read
In this report, we standardise price changes across different markets to allow for cross-market comparisons.
New Zealand 2-year swaps outperformed last week, jumping 2.2+ standard-deviations, as the RBNZ hiked their cash rate by 25bps to 1%. They also projected a faster rate of hiking and committed to the gradual reduction of bond holdings. Elsewhere, the Hang Seng is down 2.5 standard-deviations as Russia-Ukraine continues to hit risk assets.
Other markets that saw 1+ standard-deviation rises last week included:
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In this report, we standardise price changes across different markets to allow for cross-market comparisons.
New Zealand 2-year swaps outperformed last week, jumping 2.2+ standard-deviations, as the RBNZ hiked their cash rate by 25bps to 1%. They also projected a faster rate of hiking and committed to the gradual reduction of bond holdings. Elsewhere, the Hang Seng is down 2.5 standard-deviations as Russia-Ukraine continues to hit risk assets.
Other markets that saw 1+ standard-deviation rises last week included:
- Rates: US 2-year yield, US b/e inflation yield, German 2-year yield, Sweden 2- and 10-year swap rates, and US and Euro High Yield.
- Commodities: NatGas (UK), Brent Crude.
- Equities: Alphabet and Microsoft.
Meanwhile, markets that saw 1+ standard-deviation declines last week included:
- Equities: DAX (Germany), Nikkei (Japan), KOSPI (Korea), Euro Stoxx, NIFTY (India), TSMC (Taiwan), Alibaba, and Tencent.
- FX: GBP/USD.
For this week, while New Zealand swaps and the Hang Seng saw the largest moves, we’d watch European equities, NatGas, wheat, oil, amongst other commodities, as well as USD/RUB.
Bilal Hafeez is the CEO and Editor of Macro Hive. He spent over twenty years doing research at big banks – JPMorgan, Deutsche Bank, and Nomura, where he had various “Global Head” roles and did FX, rates and cross-markets research.