The following are market comments from Mihir Kapadia, CEO of Sun Global Investments, discussing markets choppy over anticipated US rate hike, US banks to deliver stellar earnings report this week.
Q4 2021 hedge fund letters, conferences and more
Interest Rate Hikes Expected
“European markets opened cautiously on Monday, still under pressure by last weeks' Fed Minutes release which indicated that the expected interest rate hikes in the US are going to be earlier than expected. The muted start to the week is also on the back of Friday’s disappointing Jobs data from the US – which showed significantly fewer than expected jobs created last month, although wages saw a strong rise.
The nearly-40 year high US inflation rate is also putting pressure on bonds yields which have risen sharply in the last few days and this is leading to downward pressure on all types of risk assets including equities.
The week ahead is looking anything but steady, as we anticipate further data on US inflation, along with the beginning of the US quarterly earning reporting season . As usual the large banks will be one of the first groups reporting. US banks had a stellar 2021, but the markets will be looking for their views on the outlook for the next quarter and 2022 in general.
US bank stocks rose 35% in 2021, outperforming the S&P500, and already started 2022 on a strong footing with the KBW Nasdaq Bank Index marking 7.28% so far.”
About Sun Global Investments
Sun Global Investments Ltd. is an international financial services firm based in London, providing a full scope of services to institutional investors, corporate companies, family offices and high net worth individuals. Established in 2008, in the midst of turmoil in the financial services industry, Sun Global identified lucrative investment opportunities in emerging market corridors and has since established itself as a trusted boutique firm for investors looking to take advantage of these versatile markets.
The company has three core functionaries: Wealth Advisory, Corporate Finance and Securities Trading. Wealth Advisory specialises in Portfolio Management, Lifetime Investment & Inheritance Planning and Family Office functions; Corporate Finance specialists work on M&A, Fundraising, Equity/Debt Capital markets, Restructuring and Special Situations; Securities Trading is the bedrock of the business with the team liaising with over 150 market counterparties in Fixed Income, Bonds, Equities, FX and Commodities to provide the best pricing for clients.
