Treasury Yields Plummet: Market Turbulence Resumes
Market Commentary
Based on our latest observations, the market last week saw NDX and SPX outperforming other assets with returns of -2.93% and -2.19% respectively. CHF and JPY were the underperformers with returns of -0.41% and -0.51%. Although NDX and SPX performed better in terms of returns, negative returns indicate a bearish market sentiment.
In terms of treasury yields, the current yield for all maturities has decreased compared to the yield from one week ago, suggesting a general decline in yields over the past week.
Looking at the risk/reward ratios, NDX has the highest ratio of 1.76, indicating a potentially higher return for the same level of risk. On the other hand, CSI300 (-0.28) and WTI (-0.36) have the lowest risk/reward ratios, implying lower potential returns for the same level of risk.
In terms of correlation, security 2846.HK (0.27) shows the lowest average correlation with other assets, followed by Brent (0.29), WTI (0.29), Gold (0.21), and Silver (0.23). This presents potential diversification opportunities for our investment portfolio.
In global news last week, Epic Games took Google to court over antitrust charges, the Google Play Store introduced a new security badge for Android VPN apps, and the Washington Post named William Lewis as its new CEO. Elon Musk also unveiled a new AI chatbot called Grok. Tragically, a radio anchor was shot and killed while live-streaming on Facebook in the Philippines, Nepal experienced a deadly earthquake, and some Americans managed to leave Gaza while others remain. Lastly, school board elections have become a battleground for polarized national politics.
Looking ahead, some upcoming economic data to watch out for next week include Consumer Credit Change, Initial Jobless Claims, Continuing Jobless Claims, and Michigan Consumer Sentiment Preliminary. The forecasted numbers for these events are specified in the report. Any surprises towards the upside or downside may cause fluctuations and should be closely monitored.
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