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 will get investors concerned about inflation again and makes the Federal Open Market Committee (FOMC) meeting next week even more important. Semiconductors had a strong week as Taiwan Semiconductor Manufacturing Co. advanced after the company reported May sales that are seen as positive.
Fixed income:
It was a volatile week for Fixed Income markets as both the ECB and BOC cut rates by 25bps. However, global Fixed Income markets sold off on Friday as the U.S. jobs report made traders dial back their bets on Federal Reserve rate cuts. Yields across developed markets jumped, led by the U.S., where 2-yr treasuries yields were up over ~15bps on the day.
Commodities:
Oil prices posted a weekly decline as algorithmic traders accelerated selling pressure, this came after OPEC+ announced a plan to loosen its production curbs. However, prices rebounded from their lows after Saudi Arabia’s Energy Minister reiterated that the production hike can be paused or reversed, depending on market conditions.