MARKET FOCUS THIS WEEK

The dynamics in equity markets, coupled with economic indicators, interest rate, energy and precious metals outlook, present a complex situation requiring vigilant monitoring in the week ahead.

TUESDAY TECHNICALS

In the near term, we expect equity markets to remain choppy and range bound with a moderate upside. Areas that have underperformed this year, including emerging market equities may have a catch-up Santa rally.

BULL RUN OVER?

Investors are left pondering what catalysts are needed that could propel the market above its previous high, while being aware of the persisting risks and the market’s historic ability to overcome uncertainties over time.

BONDS IN TURMOIL

Recent gains in Treasury yields reflect investors’ realization of complexities due to surging inflation, rising crude oil prices and the Israel-Hamas conflict. The looming question is whether yields can climb higher and, if so, at what juncture higher yields might inflict significant damage on the economy.

CONFLICT IMPACT ON USD

Current events underscore the intricate relationship between geopolitical events, key economic data, and the USD’s role as a safe-haven currency. As the Israel-Hamas conflict unfolds, market participants brace for potential shifts in the currency landscape. While acknowledging that rates may not have peaked, especially considering the upward pressure on inflation fueled by the geopolitical turmoil.

MARKET FOCUS THIS WEEK

Sustained oil prices due to sudden geopolitical unrest in the Middle East will keep market participants on their toes actively assessing risks and opportunities. Navigating these diverse factors requires a comprehensive understanding of global economic trends and geopolitical developments, making it a crucial period for investors and analysts alike.

FED AMBIGUITY TO THE FORE

Overall, the Fed remains hawkish, keeping rates high to control inflation and simultaneously make sure the economy stays strong.

FED REMAINS HAWKISH

Overall the Fed remains hawkish keeping rates high to control inflation and simultaneously make sure the economy stays strong.

SILVER SIMPLIFIED

In the long term, like maybe in the second half of 2024, when the Fed changes its approach, there could be good times in store for gold and silver.