Aviso Weekly Market Pulse: January 30th – February 3rd

Feb 6, 2023

Market developments

Equities:
The U.S. market ending the positive week with a negative day on Friday as the combination of Amazon, Alphabet and Apple earnings drove the market lower. The S&P 500 gained over 1.6% and the Nasdaq rose +3.3% for the week as investors believe the economy is on firm footing, the Federal Reserve signalled they are near the end of this tightening cycle and Meta gained ~20% after a strong quarter. Warnings from large tech companies, along with a surprisingly strong jobs report drove the S&P 500 down -1% on Friday and the Nasdaq -1.5%. Europe ended the week +1.2% as lower than expected inflation and the signal that the end of the tightening cycle is in sight drove equities higher.

Fixed income:
The fixed income market reacted more rationally after the FOMC announcement, as shorter duration treasuries spiked now that additional rate increased are expected. The 2yr U.S. Treasury yield climbed by 10bps to 4.29% for the week after a 19bps jump or Friday, while the 10yr U.S. Treasury yield remained relatively unchanged at 3.52% for the week after a 13bps increase to end the week. The U.S. market is now pricing in a higher peak rate (~5%) and a higher rate to end 2023 compared to a week ago.

Commodities:
Oil dropped by 8% this week, closing at $73.24 as longer-term headwinds drove the price down. The record low unemployment in U.S was overwhelmed by the concerns of stockpiling inventory in the U.S. and weaker than expected demand from China.

Read more…

Recent Posts

Aviso Weekly Market Pulse: June 10th – June 14th

Market developments Equities: France's CAC 40 index was down around 2.6% on Friday, on pace for its largest weekly drop since March 2022, weighing on the broader Stoxx 50 index. The sell-off in French stocks is driven by concerns over the upcoming snap election, where...

Buying with friends or family may let you buy a home sooner

If you don’t have a partner to buy a home with, can you still do it? We explore alternative ownership arrangements. In this article: Homebuyer purchasing preferences Potential pitfalls and benefits of co-ownership Before you buy Ways to save for a downpayment A recent...

Aviso Weekly Market Pulse: June 3rd – June 7th

Market developments Equities: U.S. stocks held near all-time highs, after chipmakers came off session lows following a stronger-than-expected jobs report. The very strong payrolls report should be seen as net positive for equity markets, although the upside to wages...

Aviso Weekly Market Pulse: May 27th – May 31st

Market developments Equities: Technology stocks tumbled, dragging down the broader market and trimming the monthly rally fueled by hopes of Fed rate cuts. As inflation cools, interest rate cuts could provide a tailwind for growth-oriented tech stocks by boosting cash...

Should you wait for your dream home?

With a surge in home prices and mortgage rates, saving for a down payment seems to be an uphill battle, and owning a detached home might feel far out of reach. A recent Leger survey commissioned by Aviso revealed that two-thirds of Canadian home buyers, regardless of...

Aviso Weekly Market Pulse: May 20th – May 24th

Market developments Equities: U.S. stocks climbed after data showed consumers tempered their inflation expectations in late May. The S&P 500 had its fifth straight week of gains, the longest bullish streak since February. It topped 5,300 and the Nasdaq 100 rose...