Weekly Market Update - 11 July 2022

Recession Fears Looming

US recession fears refuse to die down, as the economy continues to face stresses. Still, any recession is likely to be different in many ways to the last non-pandemic related one in 2008. Back then, unemployment was much higher, the consumer was in much worse shape, the quality of lending in the housing market was much lower and, of course, inflation was not as high. We will see the latest CPI figures tomorrow, where expectations are for a fresh peak of 8.8% y/y in June versus 8.6% in May, maintaining pressure on the Fed to keep raising rates.

Source: Bloomberg

Euro Edging Closer To Parity With US Dollar

The euro edged closer toward parity with the dollar as energy concerns and the risk of recession weighed on the outlook for the euro area, while risk aversion fueled a broad rally in the greenback.

Source: Bloomberg

Musk Sued By Twitter

Twitter sued billionaire Elon Musk over his abandoned $44 billion takeover bid, asking a judge to force him to follow through on his offer. Lawyers for Twitter told a Delaware judge that the world’s richest man failed to honor his agreement to pay $54.20 a share for the San Francisco-based social-media platform. Musk abandoned the deal Friday, citing in part concerns about the number of fake accounts among users.

Source: Bloomberg