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Writer's pictureEdward Ballsdon

Jigsaw puzzle macro themes

RESEARCH CONTENT


Financial markets seem all over the place, but there are some interesting moves taking place.

 

Equities are buoyant whilst bonds seem to be between a rock and a hard place. Following the breakout of a multiyear trading range, there has been limited follow through in Gold whilst Bitcoin has retraced significantly (forming a weekly Bearish Evening Star). And some commodities are performing despite poor Chinese data and still weak manufacturing PMIs.


In the meantime, Central Banks seem done with hiking but are unclear on future Monetary Policy in terms of timing and depth of cuts. There are a lot of pieces to the macro jigsaw and the overall picture seems everything but clear.

 

This research piece summarises the different themes to provide a clear macro picture. That picture suggests that some asset valuations should move before others, and a close look at FX and Bond markets would back this up. If these assets start new trends, then they should give a broader indication of future bond and FX market opportunities.

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