Global Investment MattersExamining Equity Markets

The Benefits Of
'Global Investment Matters'

This weekWhy Investment Analysis Is Essentialby Mark Wright CFA

Understanding how to unveil investment opportunities through analysis

We often find the best opportunities present themselves when others are fearful

Market SnapshotsMarch 14 2023


• Global equities fell 3.6% last week

• The Federal Reserve and Treasury announced emergency measures to protect the US banking system as three US financial institutions failed in the past week including the sixteenth largest US bank, Silicon Valley Bank

• Brent crude fell by 3.6% to $82.78 per barrel

• Gold rose by 0.6% to $1868.26 per ounce


Key Global Market Developments


• US equities returned -4.5% last week

• The New York Fed Global Supply Chain Pressure Index fell below its long-term historical average in February for the first time since August 2019

• Initial jobless claims came in at 211k over the week ending March 4 (vs. 195k expected), the highest level so far in 2023

• The quits rate of those voluntarily leaving their jobs (which is strongly correlated with wage growth) fell to its lowest level in almost two years, at 2.5%


• UK equities returned -2.4% last week

• UK Gross Domestic Product growth for January came in higher than expected at 0.3% (vs. 0.1% expected)

• HSBC emerged as the leading white-knight bidder as it paid a symbolic £1 for the UK arm of Silicon Valley Bank in a fire-sale facilitated by the UK Treasury and the Bank of England


• European equities returned -2.1% last week

• Euro Area economy didn’t grow at all in Q4 of last year, contrary to previous estimates that there’d be a +0.1% expansion

• Euro Area retail sales grew by +0.3% in January, which was a bit beneath the +0.6% expected)

• Robert Holzmann one of the biggest hawks on the European Central Bank’s Governing Council, said he assumed “that core inflation will not weaken significantly in the first half of the year”


• Global emerging market equities returned -3.3% last week

• Japanese equities rose by 0.6% last week

• Chinese inflation came in weaker than expected with consumer prices up by +1.0% in the year to February (vs. +1.9% expected)

• The Bank of Japan (BOJ) left its key interest rate unchanged at -0.1%, while maintaining its yield curve control policy

• China’s exports in the first two months of 2023 were stronger than expected, dropping -6.8% from a year before (vs. -9.4% expected)

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