Market Updates

All eyes are on the US inflation data release this week, which is expected to have continued to slow down compared to January 2022 (headline and core). However, it remains to be seen if the recent disinflationary comment from Fed Chairman Jerome Powell holds true.

Despite the market optimism since the start of the year, we are maintaining our slight risk-off stance in the near-term with a preference for higher quality assets with more defensive characteristics.

The sustained fall in US inflation alongside the reopening of China’s economy and a warmer-than-normal European winter brought hopes of a more optimistic start to 2023 than initially feared by markets.