Credit Suisse – the veritable 166-year old Swiss bank, rumoured to be in trouble!
Samasthiti Advisor’s Weekly Market Tracker – For the week ended Oct 7,2022
• The past week was abuzz with rumours that Credit Suisse – the veritable 166-year old Swiss bank, might collapse, triggering a widespread crisis. Some paranoid😵 people are drawing parallels with the failure of Lehman in 2008! Relax, its only a rumour (at least till now)🤐.
• The US jobs report showed that the economy is running strong – unemployment rate fell to 3.5%. Good news? Yes, but a strong labour market and economy also shatters expectations that the Federal Reserve will pause interest rate hikes.
• Which is why markets reacted horribly to the US jobs report😫. The S&P500 was down 2.8% on Friday and NASDAQ100 was down 3.9%. Year-to-date (YTD), S&P500 is now 22% down and NASDAQ100 is down more than 30% 😳.
• Not good news on the oil prices front – Organisation of Petroleum Exporting Countries (OPEC) is weighing a production cut 😥 to prop up prices as well as conserve production capacity in anticipation of more US and EU sanctions on Russian oil. After hovering around the USD 80 to a barrel, oil prices have shot up to USD 90 a barrel!
• Interest rates hardened in India. The yield on benchmark 10-year bonds is close to 7.5%😑. Two factors contributing to a hawkish bond market – inclusion of Indian bonds in JP Morgan’s bond Index has been deferred and higher oil prices which might put a strain on Indian government’s fiscal math.
• Both the Nifty and the Sensex closed the last week lower by about 1.2%. No clear trend. Markets are really like how Burton G. Malkiel described they are – like a drunk person🤪 walking down the street who can at random take a left or right, leaving observers clueless.
• Until next time, goodbye and have a great weekend🎪!
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