“Markets are being hit by the perfect storm, amid surging rates, worsening economic data in China, poor summer liquidity and a buyers’ strike,”. This is a quote from Emmanuel Cau`s, who is a Head of European Equity Strategy at Barclays, commented to CNBC last week. This quote perfectly explains what actually happened on the markets during the previous week, and some glimpse over what might be expected in the weeks to come. It was the third negative week for the S&P 500 and other equity indices in the US. The S&P 500 was down by 2.1%, ending the week at level of 4.369 after reaching the lowest weekly level at 4.335. Tech companies also finished another week in red.
With the latest move the market priced the latest available information from FOMC meeting minutes. Some volatility might be expected at the beginning of the week ahead, but it should be generally testing of the 4.350 short term support. Small reversal is possible but it should not be expected to cause a significant surge to the upside. It should be considered that both Jackson Hole Symposium and Fed Chair Powell speech are scheduled for the week ahead, which might imply higher market volatility.
With the latest move the market priced the latest available information from FOMC meeting minutes. Some volatility might be expected at the beginning of the week ahead, but it should be generally testing of the 4.350 short term support. Small reversal is possible but it should not be expected to cause a significant surge to the upside. It should be considered that both Jackson Hole Symposium and Fed Chair Powell speech are scheduled for the week ahead, which might imply higher market volatility.
