Eric Mansson @ManssonEric: "𝗠𝗢𝗥𝗡𝗜𝗡𝗚 𝗨𝗣𝗗𝗔𝗧𝗘 The U.S. market sold..."

Sweden

𝗠𝗢𝗥𝗡𝗜𝗡𝗚 𝗨𝗣𝗗𝗔𝗧𝗘 The U.S. market sold off sharply yesterday, with the S&P 500 down 1.7% and the Nasdaq 100 falling 2.3% as valuations—especially in tech—came under pressure and expectations for near-term rate cuts were trimmed. In contrast, our portfolio declined only 0.5%, supported by the efficient frontier strategy and the fact that we have deliberately reduced risk in recent weeks. While no one can predict the future, the rationale behind this risk reduction has been the elevated valuation levels that currently imply a negative 10-year forward average annual return. You can read more about this in my earlier posts, link in the comment section. The market-implied probability of another Fed cut in December fell below 50% after several Fed officials signaled a more cautious stance ahead. U.S. Treasury yields moved higher, the dollar weakened against the euro, and gold prices slipped. Oil traded sideways during most of the session but jumped late after a Ukrainian strike on Novorossiysk—one of Russia’s key Black Sea export hubs—reportedly damaged a fuel depot. 𝗘𝘂𝗿𝗼𝗽𝗲 𝗮𝗻𝗱 𝗔𝘀𝗶𝗮 European equities followed the U.S. lower, with the Euro Stoxx 50 down 0.7%, and futures on both sides of the Atlantic point lower into today’s open. Asian markets are also declining this morning. Today brings final October inflation figures for the Eurozone, France, and Spain, along with trade and employment data for the bloc. Central bank commentary is also in focus with scheduled speeches from several ECB officials. 𝗥𝘂𝘀𝘀𝗶𝗮’𝘀 𝗘𝗰𝗼𝗻𝗼𝗺𝘆 𝗨𝗻𝗱𝗲𝗿 𝗦𝗰𝗿𝘂𝘁𝗶𝗻𝘆 Russia releases a heavy batch of data today, including October inflation, Q3 GDP, and September trade figures. Forecasts point to inflation remaining largely unchanged despite recent Ukrainian attacks on energy infrastructure. GDP growth has been soft, and another negative quarter would reignite discussion over the sustainability of the Russian economy. 𝗢𝘁𝗵𝗲𝗿 𝗚𝗹𝗼𝗯𝗮𝗹 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁𝘀 China’s October industrial production slowed more than expected, while retail sales surprised to the upside. However, investment in fixed assets and real estate continued to deteriorate. In the EU, lawmakers voted to significantly relax ESG requirements, removing more than 90% of currently covered companies from the reporting framework. 𝗨.𝗦. 𝗗𝗮𝘁𝗮 𝗡𝗼𝘁𝗲 Due to the government shutdown, the household survey was not conducted for October—meaning no unemployment rate will be included in the upcoming U.S. jobs report. Agencies are now resuming normal operations after funding was reinstated late Wednesday. If you found this update useful, please make sure to hit the like button to show your appreciation. $SPX500 $NSDQ100 $GOLD $OIL $EURUSD

5 Mentioned

SPX500

NSDQ100

GOLD

OIL

EURUSD

Strictly Necessary Cookies

Performance Cookies

Functional Cookies

Targeting Cookies