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The United States: The Fed’s next set of policy decisions will have a massive impact on the federal government’s interest expenses.
Europe: Speculative accounts (such as hedge funds) have rapidly shifted from betting on the British pound to positioning against it.
Japan: The yen was caught in a short squeeze this morning. After reaching 160, the dollar-yen rate plummeted toward 155, unraveling the overextended short-yen positions and carry trades that use the yen as a funding currency.
Commodities: Gold prices continue to outpace gold ETFs’ holdings.
Equities: Companies that missed estimates were punished more than usual in this earnings season.
Momentum is currently exposed to strong economic growth and high interest rates. The risk of a momentum reversal should remain low in the absence of a significant macro shift or geopolitical shock, according to BlackRock.
Credit: High-yield new-issue volume declined last week amid rising rates.
Food for Thought: China’s dominance of clean-tech supply chains:
Edited by William Villacis
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