In the week before Christmas, inflation was still the main theme
In the week before Christmas it was still inflation that was the main theme in financial markets. From Japan came the first potential signal of a change of course from the BoJ, with the raising of the band for 10-year government bond yields. Signal somewhat confirmed by inflation data, which touched in November the highest since the early 1990s of the last century. From the U.S., on the other hand, come signs of a slowdown as far as consumption is concerned, but at the same time wage growth may still lead to bullish pushes on prices.
So let’s see how our analysis performed in the week just past.
In the past week, 53 percent of the instruments and indices used for our analyses experienced a positive change. Forty-five percent experienced a negative change. Analyzing by macroclass, 58% of the equity instruments and indexes experienced a positive weekly change. 0% of bond instruments and 83% of other asset classes used for our analysis.
Improving valuations in the past week were 21% of the total. The previous week, valuations that were upwardly adjusted were 10% of the total.
Among the analyses related to the equity sector, improving valuations were 22% of the total.
Among analyses related to the bond segment, improving valuations were 18.75% of the total. Of particular interest is the analysis of bonds by duration, which continues to indicate a deepening inversion of the yield curve.
Among the analyses for other asset classes, improving valuations were 292% of the total. This group of analyses includes those related to currencies, sentiment, and commodities.
Of the valuations made, 16% turn out to be above average in the short term. 24% turn out to be above the long-term average of valuations. Last week they were 7.75% and 30%, respectively.
