2 January 2023

Little news on financial markets in the last week of 2022

The last week of 2022 brings no big news to financial markets. Investor concerns continue to oscillate between inflation persistence and recession risk. Also complicating matters is the new wave of covid in China. On the interest rate front, Lagarde’s words chill hopes of a change of course by the European central bank anytime soon, while U.S. labor market numbers remain at very healthy levels. Against this backdrop we see how our analysis performed.

In the past week, 29 percent of the instruments and indices used for our analyses experienced a positive change. Seventy percent experienced a negative change. Analyzing by macroclass, 24% of the equity instruments and indexes recorded a positive weekly change. 5% of bond instruments and 78% of other asset classes used for our analysis. The percentages for other assets are particularly affected by the recovery in gold that continued into the last week of 2022, as shown in our global and risk-on/risk-off analysis of financial markets.

Improving valuations in the past week were 28 percent of the total. The previous week, valuations that were upwardly adjusted were 38% of the total.

Among the analyses related to the equity segment, the valuations that were upwardly adjusted were 27% of the total.

Among analyses related to the bond segment, improving valuations were 37.5% of the total.

Among analyses related to other asset classes, improving valuations were 35% of the total. This section includes all analyses related to sentiment, commodities, and currencies.

Of the valuations made, 27% turn out to be above average in the short term. 33% turn out to be above the long-term average of valuations. Last week they were 16% and 24%, respectively.