In this week’s market summary, we as usual start in the US, cover Europe and Asia and end up in Australia. This is because the US market trends drive other markets, like it or not. No market is an island – especially Australia.
Now, back in 2018, when the Fed was conducting quantitative tightening and increasing rates, US mortgage rates were around 5%, the dollar index was over 97.50, oil was trading at over $75, and the 10-year rate was around 3%. But the FED broke the markets, as the S&P 500 plunged by around 20%, and so they had to back-peddle from rate hikes. It first held them steady and then had to cut rates and restart QE by the autumn of 2019.
Just four years later, we again have mortgages rates over 5%, the dollar index is at 100, oil is trading over $100, and the 10-year rate is approaching 3%. On top of that, the Fed is now embarking on an even bigger rate hiking cycle and is very likely to conduct quantitative tightening at double the pace of the 2018 version.
CONTENTS
0:00 Start
0:15 Introduction
0:45 Fed And U Turns
3:00 Rate Rises and Policy Errors
4:40 USD
5:00 Gold
6:40 Bonds
9:15 US Economy
11:20 Reporting
12:05 US Markets
14:40 Oil
15:00 UK
15:55 Europe
17:30 Asia Inc.China
20:00 Australia
24:00 Bitcoin and Crypto
24:30 Summary and Close
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