The expert magazine of Ostrum AM

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.
 
This week:

Topic of the week : Semiconductors: shortages, tech leadership and geopolitics

  • Global chip sales fetch half a billion dollars;

  • Shortages of semiconductors may extend into 2022, affecting supply chains across many industries;

  • The semiconductor industry is concentrated around two major players (TSMC, Samsung);

  • The sector has become a major geopolitical issue, key to technological leadership and economic policy in the US and China

Market review: Entrenched volatility

  • FOMC minutes unveils tapering talks
  • The Fed could launch a permanent repo facility
  • Sovereign spreads come in, BTP spreads within 120bp 
  • Volatility and swift sector rotations within equity markets

USA : New Privately-Owned Housing Units Authorized Not Started

Building permits remain extremely dynamic in the United States, a testimony of the very high demand for housing. But it seems that the supply can’t keep up with the pace. The number of houses awaiting construction has rebounded sharply to a record high in over 40 years.
This is one more example of supply-side constraints and bottlenecks. Firms are finding it difficult to find labour and the cost of raw materials (especially timber) has increased considerably.
This could limit the extent of the economic rebound but also maintain inflationary pressures.

Figure of the week

The first time Bernanke mentioned the tapering. At a Congressional hearing “If we see continued improvement, […] we could take a step down in our pace of asset purchases.”

MyStratWeekly : Market views and strategy

Download Download MyStratWeekly - May 26th 2021
  • Stéphane Déo

    Stéphane Déo

    Head of markets strategy

  • Axel Botte

    Axel Botte

    Global strategist

  • Aline Goupil-Raguénès

    Aline Goupil-Raguénès

    Developed countries strategist

  • Zouhoure Bousbih

    Zouhoure Bousbih

    Emerging countries strategist

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