Tag: explain

Central bankers’ chance to explain themselves and why economic woe could be good news for tech

Find out what Fed chief Jerome Powell’s testimony to Congress could mean for financial markets, and why Germany could save the day for European PMIs. 

 

Global equities took another hit at the end of last week, and as we start a fresh week there is some concern that volatility could be creeping back into the markets and that tech has lost some of its lustre, along with gold, which also ended the week lower. The key driver of financial markets last week were central bankers, highlighting yet again how important they remain, politics and the pandemic, which also marks the 6-month anniversary since the World Health Organisation officially gave Covid-19 pandemic status. Below we take a look at the three things that investors need to watch out for this week. 

  • Fed chairman Jerome Powell testimony: Last week, the Fed formally announced its latest policy, Average Inflation Targeting (AIT), in
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Four market analysts explain the move

Stocks ended sharply lower Thursday with momentum tech shares including Apple leading the sell-off.

Four market experts discuss what could come next.

Barry Bannister, head of institutional equity strategy at Stifel, sees this as a computer-driven rotation.

“To an extent it does feel like too much money chasing too few ideas. It’s very hard to make that rotation from growth to value, from disinflation to reflation without there being some interruptions in the market. So I think it’s just a lot of money, a lot of liquidity, a lot of algorithms that are just saying, ‘Well, these didn’t go up, let’s buy them. The other ones may have went up a lot, let’s sell them.’ So it’s almost like a computer-driven rebalancing.”

Stephen Weiss, founder of Short Hills Capital Partners, said investors should assess how much damage was done.

“Greed has a way of just biting you in the a–

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