Week from March 14th to 20th, 2022.
An unstable week was expected in a session of the Four Witches against the backdrop of the accelerated war in Ukraine and the Fed’s fight against rapid inflation. About $ 3.5 trillion in stocks and index options were about to expire on Friday, according to Goldman Sachs. This quarterly event also involved a rebalancing of indexes, including the S & P 500.
They finally recorded a very strong week of growth, compensating for all losses incurred since mid-February, ignoring calls from certain Fed members for more aggressive policies in the fight against inflation. Did. As expected, the central bank of the United States raised interest rates by 0.25% for the first time in more than three years, and announced seven rate hikes in 2022.
The S & P 500 surged + 6.16% weekly, but fell -6.36% year-to-date. Nasdaq got even better with a + 8.18% increase (-11.19% decrease from the beginning of the year).
Despite stricter sanctions on Russia, the European index is not defeated. MSCIEMU increased by + 5.96% (-9.43% from the beginning of the year). FTSE rose + 3.48% and annual performance returned to the positive territory (+ 0.27%).
The Asian market ended in various orders. Chinese stocks plummeted after Shenzhen’s production center was resealed following the Covid-19 outbreak. The Shanghai Composite Index fell -1.77% (-10.68% from the beginning of the year). On the other hand, in Japan, the Nikkei Stock Average rose by + 6.62% (-6.82% from the beginning of the year). In India, NIFTY rose + 3.95% (-0.39% YTD).
Oil prices hit a two-week low, pushing the energy sector into the negative territory (-3.58% weekly). As the Russian attack intensified in Ukraine, the US crude oil WTI temporarily broke the iconic standard of $ 100 a barrel, ending the week at a slightly higher $ 104.70 (-4.23%).
Conversely, the other 10 major S & P sectors ended on the green, and some sectors ended in a brilliant way. Intermediate consumer goods won prize money, with + 9.27% (but -14.33% from the beginning of the year), Tesla (+ 13.84%) and Amazon (+ 10.81%) contributing significantly to this performance. Information technology has recovered + 7.87%.Recent fixes
It was a bargain purchase. Financial institutions (+ 7.14%) have benefited from a new wave of rate hikes following the Fed’s decision. Thanks to the FB Meta-Platforms rebound (+ 15.39%, but from the beginning of the year -35.64%), the communications service also worked very well (+ 5.79%).
Prices are still rising sharply
Yields on US Treasuries, which began last week, continued to rise following the Federal Reserve’s decision. The central bank is currently considering a benchmark rate of about + 1.9% at the end of 2022, well above the December forecast (+ 0.9%), to + 2.8% in 2023.
As a result, Treasury securities yields rose from + 1.75% to + 1.94% over two years, up almost 20 basis points in a week. The 10-year yield ended at + 2.15% (+15 basis points).The same trend for the yield of
10-year term in Germany (+12 basis points from + 0.25% to + 0.37%).
Higher-risk bonds made up for a small portion of the big losses seen last week. Investment-rated bonds increased by + 0.11% in Europe and + 0.59% in the Atlantic Ocean. High yield bonds followed an upward trend (+ 0.63% in Europe and + 0.81% in the US), as did emerging market bonds (+ 0.87%).The greenback collapsed (dollar index fell -0.90%) and gold fell -3.36% (price)
To $ 1,921.62 per ounce with reduced risk aversion).
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