Silver Shines While SPX and NDX Falter, Cautious Sentiments Prevail

Market Commentary

Based on our latest observations, the outperformers in the market last week were Silver, HSI, Gold, FTSE, USD, and NZD, which recorded relatively higher positive returns. Among them, Silver showed the highest one-week change at 1.2%. On the other hand, the underperformers were STI, DJI, ASX200, NK225, SPX, and NDX, with SPX and NDX indicating a bearish market sentiment with returns of -3.0% and -3.44% respectively.

Treasury yields have shown a slight increase over the past week. The 13-week Treasury experienced the largest increase of 0.005%, while the 10-year Treasury saw a smaller increase of 0.119%. This suggests a slightly higher demand for treasuries, potentially indicating a more cautious market sentiment.

In terms of risk/reward ratio, the DAX and CAC securities have the highest ratios of 1.85 and 1.59 respectively. These securities offer potentially higher returns for the same level of risk. On the other hand, the securities with the lowest average correlation with all other assets are CSI300, Gold, STI, and NK225, implying that they have relatively low correlation with the rest of the portfolio, potentially reducing overall portfolio risk.

In global news, tensions continued to rise between Russia-Ukraine, Sikhs feared Canada-India tensions, and Armenia saw many people fleeing Nagorno-Karabakh following an offensive by Azerbaijan. These geopolitical developments may have implications for global markets and should be monitored closely.

Looking forward, some upcoming economic data for next week that we should watch out for include CB Consumer Confidence, New Home Sales, Durable Goods Orders, Jobless Claims, GDP Price Index, PCE Prices, Core PCE Prices, and Pending Home Sales. Any surprises towards the upside or downside in these data points could cause market volatility and should be closely monitored.

In summary, last week we observed outperformers such as Silver and underperformers such as SPX and NDX. Treasury yields have slightly increased, indicating a cautious market sentiment. The DAX and CAC securities offer potentially higher returns for the same level of risk, while securities such as CSI300 and Gold provide diversification benefits with low correlation. Geopolitical tensions in various regions continue to impact global markets, and upcoming economic data should be closely watched for potential market volatility.

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