23 January 2023

For stock markets first stop in 2023

Last week, equity markets marked the first halt in the recovery phase that had characterised this early 2023. In Europe, in addition to geopolitical uncertainties, the ECB’s still very cautious statements weighed heavily, as it does not seem willing to stop raising rates in the short term. In the USA, on the other hand, the quarterly earnings season has begun and the first signs point to a slowdown in profits. Good data from Netfix gave the Nasdaq a boost in the last session. On the bond front, prices continued to recover, a sign that the market remains convinced that central banks will soon be ready to halt the restrictive monetary policy phase. Let’s take a look at some statistics on the weekly performance of our analysis.

In the past week, 48% of the instruments and indices used for our analyses showed a positive change. 50% experienced a negative variation. Analysing by macroclass, 41% of the equity instruments and indices recorded a positive weekly variation. 79% of bond instruments and 56% of the other asset classes used for our analysis.

Improving valuations in the past week accounted for 14% of the total. The previous week, valuations that had been adjusted upwards were 19% of the total.

Among the equity analyses, improving valuations accounted for 14% of the total.

Among the analyses for bonds, 12.5 per cent of the total were upgraded valuations.

Among analyses relating to other asset classes, improving valuations accounted for 23% of the total. Both commodity and currency and sentiment analyses are included in this section.

Of the valuations, 19% were above average in the short term. 53% were above the long-term average of valuations. Last week it was 21% and 53% respectively.