US stocks opened trading for the new year on a positive note but have lost ground as recession fear and concerns over corporate earnings quickly resurfaced.
The consensus view: a mild recession is imminent with the Fed likely to raise rates further in the first quarter but begin cutting later in the year. In anticipation of that pivot, bonds will likely rally and once again act as a buffer if stocks struggle further at the start of 2023 which the majority of analysts seem to be expecting. That’s a neat summary of the majority view but let’s not forget that the consensus forecast at the start of 2022 was wildly off-target.
In the UK, the government is under pressure to resolve disputes as unions step up industrial action. Prime Minister Rishi Sunak has resisted so far and is considering putting anti-strike laws to a vote as early as this month. Earlier in the day the FTSE 100 reached its highest level since May helped by the Pound which remains down at the start of the week but off its lows.
UK Market Chart 30th December 2022
US Market Chart 30th December 2022
US Risk Barometer 30th December 2022
Europe Risk Barometer 30th December 2022
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