- Equity markets rallied this week on signs that the economy is holding firm despite ongoing rate hikes, while inflation continues to ebb. The S&P 500 gained 1.0%, with telecom services charging ahead almost 7%. Defensives and rate-sensitives lagged the pack.
- While the Fed raised rates as expected, the Bank of Japan’s tweak to yield curve control lifted bond yields, while the European Central Bank also raised rates.
- The Nikkei and major European/U.K. indices were all higher on the week. The TSX, however, lagged with a 0.1% decline, as telecom, consumer staples and utilities were all lower.
Bottom Line: It won’t make a significant difference whether there is one more rate hike or not, because either way, the Fed is likely to pause afterwards.
Bottom Line: Meta has a great story with earnings to back it up, while Shell fell short of loftier expectations.
Bottom Line: There is little reason to be pessimistic about the economic outlook in the near term, and we expect the consumer to continue to hold up well.
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