News & Research

Earnings reports lift US sectors; Liquid stocks extend gains worldwide; Developed Markets ex-USA fare better year to date

In the last ten days, investor sentiment has decided to focus on the only positive from this data, that inflation may have peaked and is decidedly on the retreat.

Olivier D’Assier, APAC Applied Research Head at Qontigo, discusses the latest on the markets. He spoke with hosts Doug Krizner and Vonnie Quinn on “Bloomberg Daybreak Asia.”

Paul Allen in Sydney and Kathleen Hays in New York drive to the Asia, Australia and New Zealand market opens while wrapping the biggest stories of the previous day on Wall Street. One of today’s guests: Olivier d’Assier, Qontigo Head of Applied Research, APAC (Source: Bloomberg)

Vidrio Financial and Qontigo announced the expansion of their existing partnership to work more closely together and provide enhanced risk solutions to the multi-asset class institutional allocator market.

Individual developed market currency risk falls, but aggregate risk remains high; Momentum suffers while Value soars; Trading volume remains low, especially in Information Technology and Communications Services.

Yields see-saw over mixed economic data and central-bank comments; Yen plummets as BoJ defies markets by leaving yield cap in place; Decoupling stock and bond prices reduce portfolio risk.

US Risk-On Rally led by Market Sensitivity, Volatility Factors; Emerging/Developed Diversification Ratio Continues to Grow

Dollar falls to 7-month low as decelerating consumer prices take pressure off Fed; Easing inflation and rate expectations boost UK shares and bonds alike; Rising cross-asset correlations severely limit diversification opportunities.

The recovery in sentiment among US investors that begun in November, 2022, has now stalled, ending neutral for the third week in a row.

Markets recovered in Q4, and volatility fell for many, but predicted volatility ended the year in the top 15% of observations from the past 40 years in the US.

The Dow racked up gains Wednesday, as investors increased bullish bets on stocks on optimism that data due Thursday will show a further slowdown in inflation. “Earnings expectations have come down already… that probably means there’s less of a chance of negative surprises,” Melissa Brown, Managing Director of Applied Research at Qontigo, told Investing.com’s Yasin Ebrahim on Wednesday.