1st round of French elections takes place this Sunday. A Macron win is not a done deal anymore as Le Pen has been surging in the polls recently. Second round is in 2 weeks. A Datapraxis / @YouGov poll shows Macron at 51% and LePen at 49%.
Charles-Henry Monchau
Chief Investment officer
CHART OF THE WEEK: French elections: not a done deal for Macron.
WEEKLY SUMMARY: Stocks post weekly losses after Fed comments
US equity markets finished lower for the week, with small-caps and growth stocks underperforming meaningfully. Defensive sectors recorded solid gains, while Tech and consumer discretionary registered steep losses. Volumes were low as investors awaited the start of Q1 earnings reporting season. Fed policy and the situation in Ukraine continued to loom large over sentiment. Stocks pulled back sharply on Tuesday morning after Fed Governor Lael Brainard (a “dovish” policymaker) said the Fed would start to reduce its balance sheet at a rapid pace as soon as May. Stocks fell further on Wednesday as the Fed’s mid-March policy meeting minutes revealed that policymakers were prepared to reduce the central bank’s balance sheet by USD 95 billion per month, more than the consensus expectation of around USD 80 billion. The minutes also showed that the Fed is prepared to raise rates by 50bps at their upcoming May meeting. This caused the 10-year US Treasury yield to hit its highest level since early 2019. The move also led the closely watched 2s10s yield curve to steepen meaningfully. Shares in Europe rose modestly amid concerns about central bank tightening, inflation, and Russia’s invasion of Ukraine. Core eurozone bond yields climbed in tandem with U.S. Treasury yields. Investor morale in the eurozone fell to its lowest level in nearly two years in April, according to Sentix. Precious metals rose while oil was down for the 2nd week in a row. Despite The Miami Bitcoin Conference, cryptos had a rough week.
Have a lovely week-end.
Disclaimer
This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document. (6)
