This week was a case of sell the rumour, buy the fact for the ASX following reports of Beijing lockdowns. Then buying the dip as COVID numbers eased and the further comments of economic support. ASX Close: Strong end to losing month as rate rise looms themarketherald.com.au/asx-close-stro…

Beholden to China but being a commodity focused market, the ASX has continued to outperform. However with the iron ore restocking period starting to fade, Chinese steel demand falling and inventories increasing there is a risk that demand and prices for iron ore could soon fall.

The US had a mid-week pump and dump, the BoE reignites stagflation concerns and the Chinese govt had an epiphany, their economic support rhetoric and COVID-zero policy are inconsistent. ASX Close: Rates panic fuels heavy weekly loss themarketherald.com.au/asx-close-rate… via @themarketherald

US CPI triggers a chaotic week but dip buyers step up | Can central banks engineer a soft landing or is recession likely | Xi and zero-COVID, thing are improving but still a disaster. What a Terra! ASX Close: Sharp rebound trims a fourth week of losses themarketherald.com.au/asx-close-shar…

A chaotic week in equities markets on US CPI data indicating more persistent inflation. Bond yields also fell as there was a flight to safety on concerns that central banks will not be able to engineer a soft landing and could trigger a recession.

The ASX closed up 1.1% for the week, outperforming global markets. Australia, the luck country.

Has the market experienced an orderly fall and is now starting the next cycle, or just a reprieve from seven weeks of wreckage not seen in a decade? The hangover has not set in, so this has the hallmarks of a bear market rally, particularly in beaten down duration stocks.

It was difficult to find sanctuary during May as the ASX fell 3.5%, while not expected to improve in the short term with a rotation into beaten up opportunities, although commodities are expected to continue to outperform as China is recovery focused. Read further the May update

Is Elon Musk talking his book again, but on staff costs? Cutting staff while the economy is running hot while there is a growing demand for Tesla's seems counter-intuitive. Elon Musk seeks 10% job cuts at Tesla over ‘super bad feeling’ about economy theguardian.com/technology/202…

On Thursday the US equities market responded positively on OPEC news and potential slowing payrolls but this was all unwound on Friday after strong hiring data cleared the way for the Fed to remain aggressive in its fight against inflation.

Global sentiment is permeating into the ASX down 4.4% for the week. Commodities and banks turned negative, exacerbated by investors heading for the safety of the sidelines over the long weekend, not wanting to be exposed to the uncertainty of the US CPI. Good choice!

Following the increase in the US cash rate by the Fed by 75bps, the market is asking if it has reached capitulation. If we are wondering if we have reached it, then it probably means it hasn’t happened.

The week was consumed with hard or soft landings, and validation that avoiding a hard landing, while not inevitable, will be a challenge. Resilient economic fundamentals and softening central bank tones was enough to trigger a rebound. Watch for the standard window dressing.

The last couple of days of trading had all the hallmarks of a tidy-up of portfolios in a year where bringing out the dead during a quarter, half and year-end rebalancing did not matter given the final results. This part of cycle looks like it has only just getting warmed up.

AC has had an outstanding inaugural year on both an actual and comparative basis. Equity markets are expected to continue to be volatile for over the short term as interest rates rapidly rise and growth comes under pressure. Read further the June 2022 performance report.

A quarter, half and year end rebalancing of equities by institutions created some volatility in the market during the week. However, by the time that was all over reality set in over continuing doubts about the strength of the global economy.

Continued concerns over rising interest rates, slowing global growth and negative data saw the US yield curve invert, with a rotation into longer duration tech stocks that would benefit from falling yields.

Notwithstanding the recent selloff of Chinese equities due to concerns over further lockdowns and continuing property sector issues, exposure to China looks to be the better investment option given where it is in the recovery cycle. Shame about the sovereign risk.

The past week has seen a global resurgence in risk appetite despite deteriorating economic data. Principally this is due to the market expecting central banks to slow the pace of rate hikes, with the Fed leading the pack, and a rotation into duration and growth stocks.

The month has been notable for a global resurgence in risk appetite despite deteriorating data. The question is whether this is a bear market rally or the start of the next bullish cycle. Read further the month that was July.