Mid-Week Wrap: 29th November 2023
29 N O V E M B E R 2 0 2 3 • I S S U E 2
Market Mood
Against the backdrop of a nuanced economic landscape, Central Banks have chosen to halt rate hikes, leading to a noteworthy decline in bond yields. This, combined with ongoing subdued economic activity, points toward a potential easing of inflationary pressures. Additionally, geopolitical tensions have experienced a respite with a cease-fire agreement between Israel and Hamas, offering a welcome reduction in market uncertainty. As we step into the historically favorable period colloquially referred to as the 'Santa' rally, spanning from November to January, investors may anticipate the possibility of enhanced market returns. Importantly, the market remains buoyed by substantial liquidity, thanks to robust central bank reserves. In this ever-evolving scenario, investors find themselves positioned to navigate a landscape shaped by intricate economic factors and geopolitical developments.