Read our market review and find out all about our theme of the week in MyStratWeekly with our experts Stéphane Déo, Axel Botte, Aline Goupil-Raguénès and Zouhoure Bousbih.
- Jackson Hole’s date was obviously in everyone’s head. J. Powell has so far distilled evidence of an upcoming decline in the monthly asset purchase program, which could start in Q4 2021. A linear decline seems to be the assurance of minimal impact on market volatility.
- The ECB is at cruising speed with a QE that continues and has helped to maintain very stable Bund and peripheral rates. The Board of Governors is also considering the post PEPP period, a major topic, although information on the issue should not be expected in the coming months, with the decision to take place in March 2022.
- In this environment of crushed volatility, risky assets performed well, equities are up and credit spreads were very stable.
- However, still waters run deep, the signs of nervousness, or at least caution, of the market are accumulating. With tense valuations, even extremely tense in some cases, and growth that has clearly passed its peak, it is indeed difficult to find reasons for a second wind of the markets.