Markets to Watch This Week: Global Yields Hamper Equities
- By Bilal Hafeez
- 1 min read
In this report, we standardise price changes across different markets to allow for cross-market comparisons.
US bond yields saw a 3+ standard-deviation jump last week, while tech stocks got smashed with NASDAQ seeing a 1.9 standard deviation weekly fall with notable drops seen in Microsoft (-2.2 std) and Alphabet (-1.5 std.).
This article is only available to Macro Hive subscribers. Sign-up to receive world-class macro analysis with a daily curated newsletter, podcast, original content from award-winning researchers, cross market strategy, equity insights, trade ideas, crypto flow frameworks, academic paper summaries, explanation and analysis of market-moving events, community investor chat room, and more.
In this report, we standardise price changes across different markets to allow for cross-market comparisons.
US bond yields saw a 3+ standard-deviation jump last week, while tech stocks got smashed with NASDAQ seeing a 1.9 standard deviation weekly fall with notable drops seen in Microsoft (-2.2 std) and Alphabet (-1.5 std.).
Markets that saw 1+ standard-deviation gains last week included:
- Rates: US 2s10s, China 10y, Japan 2y and 10y, UK 2y and 10y, Germany 10y, Canada 2y and 10y swap, Australia 2y and 10y swap, New Zealand 10y swap, Norway 10y swap, Sweden 2y and 10y swap.
- FX: ZAR/USD.
- Equities: JP Morgan, Alibaba, India NIFTY.
- Commodities: Natural Gas, oil.
Meanwhile, these markets saw more than 1 standard deviation declines:
- Equities: MSFT, NASDAQ, GOOG, S&P500, NVIDIA, Russell 2000.
- Commodities: Gold and silver.
- Crypto: Ethereum.
- Credit: US high yield.
- Rates: US b/e inflation.
For this week, we’d watch US yields and NASDAQ.
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.