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Weekly Brief

Januarius Weekly Brief

Patrick Wong July 9, 2021 Source; Bloomberg, Julius Baer, BusinessWold

U.S. equities continued to be led by large cap growth and "Bog Tech" stocks in the week ending July 8th. Winners of the inflation trade such as financials, energy and small caps began to show weakness. fixed income markets continued to gain as long-term rates continued to slide.

Global Markets

  • All thress major stock benchmarks closed lower, with industrial and financial shares leading the S&P's 0.9% retreat. The reason for the pullback? well, it dependes on who you ask. A basket of retails traders' favorite stocks was on the brink of a bear market, plunging 2.6% as investors turned to safer bets. Today's decline extended the group's retreat from a June 8 high to just shy of 20%. (Bloomberg)
  • Treasuries gained for an eight day, with U.S. 30-year yields sliding briefly below 1.90% for the first time since February. The move came as investors backtracked on--here's that word again--reflation bets. (Bloomberg)
  • It's thursday. You know what that means: jobless cliams. Initial filinf edged up by 2,000 last week, while continuing claims fell to a pandemic low. The latter may reflect the fact that more than half of states are ending enhanced federal unemployment benefit programs amid debate about whether they are hampering hiring efforts. (Bloomberg)
  • Treasury yields cotinued to tumble as investors rethink bets on inflation and get edgy about the outlook for the global recovery. Stocks also took a hit as futures slumped. China's 10-year yield fell below 3% for the first time since August as traders bet on policy easing. And a key gauge of Chinese stocks traded in Hong Kong neared a bear market after Beijing's latest crackdown. (Bloomberg)
  • Speaking of China's crackdown, on ecompany cretainly got the jitters. LinkDoc halted plans for a U.S. IPO, people familair said, the first known company to pull out of a debut after Beijing touchened up on listings. (Bloomberg)
  • When it comes to confirming views, we still think that the inflation debate is a red herring. The spikes in inflation rates are temporary and will calm down in the second haf of 2021. The comforting signals include the massive supply response in production in the first half and signs that price spikes curbed demand in some of the red, hit, and glowing our preference for equities too despite continuous downgrades of cylical versus defen-sive sectors. (Julius Baer)


  • Finance dep't says manageable fiscal deficit, BoP keys to recovery (BusinessWorld)
  • MSMEs reporting sales declines top 50% in June, off 90% peak (BusinessWorld)

Simple and clear objectives have the ability to drive complicated businesses.

JJ Atencio