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June 30.2022, Equity futures sink further towards worst H1 on record


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‼️ Equity futures sink further towards worst H1 on record

📰 Global stock futures fell in Asian, European and early U.S. trading Thursday, looking at the worst first half in history for global equity prices. Strong recession fears are returning, with consumer confidence data showing signs of weakening consumer demand. In addition, investors are concerned that the recent demonstration of central bank resolve to curb inflation will further slow the economy.

Central bank chiefs from the Fed, ECB and Bank of England met in Portugal this week and reaffirmed their determination to contain inflation, even if it comes with pain for markets. While the Sintra forum did not bring anything new on the whole, it was another warning that the era of cheap money that has driven equity markets to new records is coming to an end.

The sell-off intensified ahead of the third quarter, and there is little sign that the new quarter will produce any bold bargain hunters. The dramatic slide in asset prices this year has been led by the growth sector (especially tech stocks) and other stocks that are more sensitive to rising interest rates.

The prospect of slowing growth will become i in apparent coming data and will likely be voiced by companies in the upcoming earnings season (which begins in late July). Recession concerns are also worsening risk sentiment, weighing (in the short term) on commodity prices and other risky assets - especially the crypto market, which is facing heavier selling in the short term.

In the FX market, we see investors rushing back into the dollar haven on expectations of higher interest rates (globally, but especially led by the Fed). CHF is also in demand, while riskier currencies such as GBP, AUD, but also EUR are struggling to regain their footing.

Lower US Treasury yields are weighing on the financial sector. I expect further losses in cyclical/tech stocks today. Defensive stocks will "outperform" but we will likely see broad losses.


🇺🇸 US Markets ↘️
Cyclical Stocks ↘️
Tech/Growth Stocks ↘️
Financial stocks ↘️
Defensive Stocks* ➡️
(*such as Health / Consumer Staples)
Energy Stocks ➡️/↘️

💱 Forex Markets
JPY ➡️/↗️
CAD ➡️
AUD ➡️/↘️

⚒ Commodity Markets ↘️
Oil prices ↕️
Gas prices ↘️
Metal prices ↘️
Precious Metals ➡️/↘️

⚡️Crypto Market ↘️

(*↗️ bullish, ↘️ bearish, ➡️ sideways / stable, ↕️ mixed / volatile)

Yours, Robert 📉🏦📉💥


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