Read our market review and find out all about our theme of the week in MyStratWeekly and its podcast with our experts Stéphane Déo, Axel Botte, Aline Goupil-Raguénès and Zouhoure Bousbih.

La revue des marchés : budgetary short-sightedness?

  • Projected budget deficits this year remain large. Budgets should contribute to growth and absorb the energy shock;
  • In the medium term, this puts public finances on a worrying trajectory and, above all, limits the room for maneuver should another crisis affect the European economy;
  • So far so good, but once again, focus on immediate interest. Yet another example of “budgetary short-sightedness”?

Market review: Immaculate rally

  • Disinflation keeps everything rally going;
  • US inflations down to 6.5;
  • Renewed downward pressure on bond yields;
  • Risky assets still upbeat amid lower dollar.

Le podcast de Stéphane Déo

  • What about the reopening of China?
  • Isn’t equity rally too much?

Chart of the week

chine-volume-de-passagers-journalier-dans-le-métro-moyenne-mobile-7-jours

China is reopening and one high-frequency gauge for increasing activity and return to normalcy is the metro passenger volume. The chart shows the two main cities, Beijing and Shanghai. Overall, transport volume were about 1/4 of normal in China at the end of last year. They are now rapidly up and back to about 3/4 depending on the cities.
This illustrates the rapid reopening of the Chinese economy. A major element for the global growth trajectory. Hence also for inflation.

Figure of the week

2022 was the 5th warmest year on record. Temperatures were almost 1.2 degrees above pre-industrial levels.

MyStratWeekly : Analyse et stratégie des marchés

Download Download MyStratWeekly – January 17th 2023
  • Stéphane Déo

    Stéphane Déo

    Head of markets strategy

  • Axel Botte

    Axel Botte

    Global strategist

  • Zouhoure Bousbih

    Zouhoure Bousbih

    Emerging countries strategist

  • Aline Goupil-Raguénès

    Aline Goupil-Raguénès

    Developed countries strategist

Reading time : 15 min.
INSIGHTS MARKETS
Producer prices on final demand are falling again in December. The headline index stands at 6.2%, a far cry from the June high of 11.2% for producer prices on final demand.
01/18/2023
Reserved for pros
Podcast
Reading time : 15 min.
INSIGHTS MARKETS
Read our market review and find out all about our theme of the week in MyStratWeekly and its podcast with our experts Stéphane Déo, Axel Botte, Aline Goupil-Raguénès and Zouhoure Bousbih.
01/17/2023
Reserved for pros
Reading time : 15 min.
INSIGHTS MARKETS
Each month we share the conclusions from the monthly strategy investment committee which provides a summary of Ostrum’s views on the economy, strategy and markets. 
01/17/2023
Reserved for pros