Overall Sentiment, Mandates, Passivity, Agreement, Uncertainty
Total Returns, The State of Inflation, Market-Based Expectations, Energy and Commodities, Shelter Inflation, and Search Trends
Rail strike back on the table, Low water levels in Mississippi and Ohio Rivers, New semiconductor restrictions, and US imports fall
Fixed Income and Corporate Sector Returns, Options-Adjusted Spreads, Credit ETF Flows, Biggest Movers, and Issuance Recap
Markets sold off on Friday following the release of better-than-expected employment data. Job market strength is bad for investors because it means the Fed will continue hiking rates, or so the market believes. Flows for the past 30 days remain skewed toward US government funds as investors flee for safety but it’s not entirely risk-off. Large/mid-cap and broad equity funds together make up an equivalent share to US government funds.
Commodities had a strong week, with most gains concentrated within the energy sector. Overall, Bloomberg’s BCOM Index gained 5% on the week. Tin suffered the largest losses on continued recession fears. Brent crude, gas oil, heating oil, WTI crude, and gasoline all saw gains for the week as OPEC+ decided to cut production by a whopping 2 million barrels a day. The cut, which will be the deepest since the 2020 COVID pandemic, prompted analysts at Goldman Sachs to raise its oil price forecast for 2023 to $110 per barrel from $108 per barrel.