All eyes on US data and the Fed
IT wasn't that long ago that analysts spoke of the "Great Flotation" giving way to the "Great Rotation". The former was a reference to the strategy adopted by the US Fed and other central banks to pump liquidity into the system to float risk assets and the economy; the latter was a reference to a gradual shift of money out of bonds into equities.
Over the past fortnight that talk has been shelved; money hasn't flowed from bonds into stocks, instead, it's going the other way - last week, the 10-year Treasury yield fell to a 16-month low of about 2.33 per cent.
The assumption behind the original theme, of course, was that the Great Flotation would actually work as intended and that the affected economies - mainly the US - would recover and eventually achieve the necessary "escape velocity" to float upwards on their own, without liquidity support.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
S&P slashes Boeing credit outlook as rating hovers above junk status
Honda to spend US$11 billion on EV strategy in Canada
GlaxoSmithKline sues Pfizer and BioNTech over Covid-19 vaccine technology
Mapletree Industrial Trust Q4 DPU rises 0.9% to S$0.0336
Nasdaq’s profit falls as shaky economy keeps IPO revival elusive
iFast Q1 net profit surges on ePension unit performance