Equities snapped the losing streak 

The war in Ukraine has tended to increase uncertainty regarding inflation and growth prospects. When and with what consequences this war will end is pure speculation, but capital markets are expected to build a certain immunity to the headline risks in the coming weeks. The medium- to long-term consequences, on the other hand, could be significant. It is possible that we are at the beginning of a new bloc formation or a new Cold War. This would put a significant damper on globalization and further fuel higher structural inflation. 

US equities ended higher Thursday in a choppy trading session as investors digested a slew of economic data amid uncertainty over the Federal Reserve policy future path. The Dow Jones rose 0.3%, and the S&P 500 and Nasdaq 100 added 0.5% and 0.7%, respectively. US economic growth in the last quarter was downwardly revised, while the core PCE price index, the Fed’s preferred inflation measure, was adjusted to show a softer slowdown. Meanwhile, the number of Americans filing for state unemployment benefits fell last week, adding to concerns that the labour market remains tight. European equity markets recovered from two straight sessions of losses yesterday, with the benchmark Euro Stoxx 50 adding 0.4%. Oil and gas shares led gains in the Old Continent, together with tech companies. 

Summary as at 24.02.2023 

• Most Asian equity markets sank on Friday as uncertainty over US monetary policy triggered sharp losses in technology shares, while Japan’s Nikkei index rallied as the incoming head of the Bank of Japan vowed to maintain an ultra-loose policy. 
• European and US equity futures were seen flat early Friday morning, as investors continue to worry about the pace of future interest rate hikes in the face of contradictory economic signals. 
• Oil prices rose on Friday and were close to trading positive for the week as the prospect of deeper-than-expected cuts in Russian supplies largely offset concerns that rising interest rates will dampen demand this year. 
• The annual inflation rate in Japan rose to 4.3% in January from 4.0% in the prior month. This was the highest reading since December 1981, amid a rise in prices of imported raw commodities and yen weakness. Meantime, core consumer prices increased by 4.2% year on year, matching market forecasts but above the Bank of Japan’s 2% target for the 10^th straight month. 
• The second look at US Q4 GDP showed a 2.7% quarter-on-quarter annualized expansion rate, versus expectations to be unrevised at the first estimate of 2.9% growth. Personal consumption was adjusted solidly lower to a 1.4% increase, compared to forecasts of a revised 2.0% gain, from the prior reading of a 2.1% growth rate.  
• The consumer price inflation in the Euro Area was revised slightly higher to 8.6% year on year in January 2023, up from a preliminary estimate of 8.5%. Still, the rate eased to the lowest level since last May, due to a slowdown in energy inflation. The core rate picked up to a fresh record high of 5.3% in January. On a monthly basis, consumer prices fell 0.2%, the third consecutive month of decline. 
• Ebay posted adjusted Q4 EPS of $1.07 on Thursday, matching estimates, with revenues declining 4.0% year on year to $2.51 billion, compared to the forecasted $2.47 billion, with gross merchandise volume coming in at $18.2 billion, down 12.0% yoy. The company said its Q4 results demonstrate the continued resiliency of its marketplace amid economic uncertainty. It issued Q1 revenue guidance with a midpoint that was above estimates, while its EPS outlook was mostly in line with expectations. Shares traded solidly lower as the Street appeared unimpressed by its sales outlook. 
• Booking Holdings Inc announced better-than-expected results in Q4 2022 after the market close on Thursday, with revenue up 35.8% year on year to $4.05 billion, added by strong travel demand. On a per-share basis, net income came in at $31.92 compared to average estimates of $20.97 per share.  
• Boeing temporarily halted deliveries of its 787 Dreamliner as it works to resolve a documentation issue related to a fuselage component of the plane. The company said the issue did not pose a flight safety concern for the in-service fleet and will not impact its production and delivery targets for 2023.