This insight looks at recent Health Care industry underperformance in the context of its performance in the post-Covid period. It explores the idea that US policy uncertainty may be an additional short-term drag on the industry not just in the US but globally as well.
Outlook
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The market spent the session waiting for Nvidia, with hedges being put on throughout the day, which is why the VIX 1-day rose from around 8 to 15.
Chair Powell signals potential rate cuts, UK inflation remains high, Japan’s CPI surprises, and global data releases offer mixed signals on growth, sentiment, and monetary policy direction.
Inflation continues to give mixed signals, which can unsettle investors who anticipate the Fed adjusting rates at its September meeting.
When data pushes and pulls in opposite directions, like Dr. Doolittle’s fictional animal, traders should be prepared for anything. And prior Jackson Hole conferences have shown that Powell can be anywhere from even-handed to strident.
Oil prices have long been one critical driver for macro and equity performance. Amid a volatile oil prices backdrop, we think it is crucial for investors to understand the correlation between oil prices and APAC equity markets.
Unlike income taxes, which are progressive, tariffs function like a sales tax—affecting all income levels equally and hitting lower-income consumers harder.
There will be three large Treasury settlements on Tuesday, Thursday, and Friday. One can only make an educated guess as to where the funding will come from. Will the reserves take a hit?
The ECB and BoJ held rates, signaling caution. UK retail sales rebounded slightly, but consumer sentiment and global growth indicators remain mixed, keeping markets on edge.
Stocks were under pressure from the opening bell on Friday as investors sorted through fresh tariff announcements from the White House, a softer-than-expected July jobs report, and mixed Q2 corporate reports.
Once again, the decision to keep the Fed Funds Rate at its current level comes as little surprise, as attention now turns to the next official FOMC gathering in September.
It appears the US is on the path to completing trade deals with the largest countries in the world which will change the terms of trade between the respective areas. And then there was the signing of the Genius Act.