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Here is our latest edition of Market Watch. Highlights in this issue include: • AI-fueled tech rally takes a breather as further signs of a soft landing emerge • Treasury yields steady despite Fed comments and strong jobs report • Bank of Canada holds interest rate steady, offers few hints about timing of cuts • Fed Chair still expects rate cuts this year, but inflation progress ‘not assured' • ECB holds rates as central bankers weigh timing of cuts • In the news: Cracks re-emerge in regional banking sector as policymakers weigh new capital requirements

Here is our latest edition of Market Watch. Highlights in this issue include: • AI-fueled tech rally takes a breather as further signs of a soft landing emerge • Treasury yields steady despite Fed comments and strong jobs report • Bank of Canada holds interest rate steady, offers few hints about timing of cuts • Fed Chair still expects rate cuts this year, but inflation progress ‘not assured' • ECB holds rates as central bankers weigh timing of cuts • In the news: Cracks re-emerge in regional banking sector as policymakers weigh new capital requirements

United States Federal Reserve maintained key central bank Fed interest rate at 5.25% – 5.5% range. Targeting inflation rate at 2%. Read - https://lnkd.in/g5Hqw5XX follow Caproasia | Driving the future of Asia The United States Federal Reserve has maintained the key central bank Fed interest rate at 5.25% – 5.5% range, targeting inflation rate at 2%.  United States FOMC: “Recent indicators suggest that growth of economic activity has slowed from its strong pace in the third quarter. Job gains have moderated since earlier in the year but remain strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated. The U.S. banking system is sound and resilient. Tighter financial and credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. The extent of these effects remains uncertain. The Committee remains highly attentive to inflation risks. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent.”

The performance of the markets in 2023 was bolstered by the months of November and December. This can be attributed to the decline in inflation, as well as the decision by the FED and ECB to halt their target interest rate hikes. Additionally, Central Banks have hinted at the possibility of rate cuts in 2024.   The current topic of discussion revolves around the number of rate cuts expected in 2024, with investors anticipating more cuts than the Federal Open Market Committee. According to futures markets, the target range for interest rates is projected to be around 3.50% - 4.00% by the end of 2024. This would require six or seven quarter-point cuts from the current range of 5.25% to 5.50%. The key factors to consider in relation to inflation and rate cuts are: a) wage growth, b) service inflation, c) shelter costs and housing supply, d) bond yields - spread, and e) cost of living.   Typically, it takes 12 to 15 months for the economy to enter a recession after the yield curve inverts. However, despite the passage of a year and a half, there are few indications of an soft recession. Nevertheless, it is advisable to maintain a cautious approach in the markets. This includes investing in short and medium-term investment-grade and high-yield bonds above BB rating, a combination of growth and value large and medium-cap stocks in Europe and the US, and private debt.   Wishing you a Happy New Year! Remember, HEALTH is the most important Wealth

From the desk of Terry Tyrrell in 2024 Russell Investments - Market Week in Review:- Inflation moderates in Europe. When could rate cuts begin? Executive Summary:- * Eurozone inflation declined to a rate of 2.8% in January * The U.S. Federal Reserve, the European Central Bank and the Bank of England could all lower borrowing costs by the middle of this year * Resilience has emerged as the key theme from Q4 earnings season Click the link to watch the 5min video or read the update in greater detail. To learn more about Russell reach out to your local Regional Manager NSW/ACT - Terry Tyrrell NSW/ACT - Samuel Sullivan SA/WA - Ross Nayler VIC/TAS - Peter Poulopoulos VICE/TAS - Rebecca Yabsley QLD - James Noone, CIMA® Have a terrific weekend. Terry #weekinreview #marketanalysis #marketcommentary

United States Federal Reserve maintained key central bank Fed interest rate at 5.25% – 5.5% range. Targeting inflation rate at 2%. Read - https://lnkd.in/gPQYVET8 follow Caproasia | Driving the future of Asia The United States Federal Reserve has maintained the key central bank Fed interest rate at 5.25% – 5.5% range, targeting inflation rate at 2%.  United States FOMC: “Recent indicators suggest that growth of economic activity has slowed from its strong pace in the third quarter. Job gains have moderated since earlier in the year but remain strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated. The U.S. banking system is sound and resilient. Tighter financial and credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. The extent of these effects remains uncertain. The Committee remains highly attentive to inflation risks. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent.”

Disinflationary growth is causing risks within the labor market while a potential Fed rate cut in September feels all but assured. Check out more about the policy recalibration (and look at the key market indicators) here:

Disinflationary growth is causing risks within the labor market while a potential Fed rate cut in September feels all but assured. Check out more about the policy recalibration (and look at the key market indicators) here:

Disinflationary growth is causing risks within the labor market while a potential Fed rate cut in September feels all but assured. Check out more about the policy recalibration (and look at the key market indicators) here:

Disinflationary growth is causing risks within the labor market while a potential Fed rate cut in September feels all but assured. Check out more about the policy recalibration (and look at the key market indicators) here: