Rally from quarterly reports in a volatile week
The week on the financial markets began with good quarterly results from US banks and ended with an eye on monetary policy, in a quarterly rally that well represents the volatile climate on the markets at this time. In the US, more statements from the Fed governors but uncertainty remains over moves from December onwards, with a rate hike in November now taken for granted.
In the past week, 69% of the instruments and indices used for our analyses recorded a positive change, mainly the result of the first few trading days, pushed up (a sort of quarterly rally) by the good news on the corporate profits front and then more cautious towards the end of the week due to the renewed recessionary fears and the statements of some FED governors. On the other hand, 30% of the equities considered experienced a negative change. Analysing by macroclass, 79% of equity instruments and indices recorded a positive weekly change. 26% of bond instruments and 67% of the other asset classes used for our analysis, including commodities and currencies.
Improving valuations in the past week accounted for 43% of the total. The previous week, upwardly adjusted valuations were 39% of the total.
Among the equity analyses, improving valuations were 44% of the total. Among the analyses for equities, the analysis for emerging markets from the Asian region can now also be consulted.
Among the analyses for bonds, 44 per cent of the total were upgrades.
Among the analyses relating to other asset classes, improving valuations accounted for 47 per cent of the total. In the Plus section there is now a new analysis devoted to the currency market.
Of the valuations, 44 per cent were above average in the short term. 38% were above the long-term average of valuations. Last week it was 45% and 28% respectively.
