Weekly Market Update - 9 May 2022

Bears In The Market

Losses in equity markets are spreading from risky stocks to steady earners. The S&P 500 fell for five straight weeks, its longest retreat in a decade and Asia stocks look set to come under pressure Monday. And the Federal Reserve’s most aggressive policy tightening in two decades is also sucking emerging markets into a “sell everything” slump. Bonds are not immune either. The relentless bear market in U.S. Treasury debt could see yields across much of the maturity spectrum on course to crack above their 2018 highs.

Source: Bloomberg

Philippine Presidential Election

For decades, successive Philippine leaders have fought to recoup as much as $10 billion siphoned off during the dictatorship of Ferdinand Marcos. Now, with a double-digit lead ahead of upcoming elections, his only son, Ferdinand Marcos Jr., known as Bongbong, is set to oversee the search for the loot. Here’s how the dictator’s son has painted a rosy picture of his father’s era, and what could happen to all that missing money.

Source: Bloomberg

FED Hike

The Federal Reserve delivered the biggest interest-rate increase since 2000 — a half percentage point rise — and signaled it would keep hiking at that pace over the next couple of meetings, unleashing the most aggressive policy action in decades to combat soaring inflation. The Fed will begin allowing its holdings of Treasuries and mortgage-backed securities to decline in June at an initial combined monthly pace of $47.5 billion, stepping up over three months to $95 billion.

Source: Bloomberg