Read our market review and find out all about our theme of the week in MyStratWeekly and its podcast with our experts Stéphane Déo, Axel Botte, Aline Goupil-Raguénès and Zouhoure Bousbih.
Summary
Topic of the week: A simulation of CO2 emissions
- As COP 27 is in full swing, we are updating our global CO2 emissions simulation model;
- Gains in environmental productivity allow the most developed countries to reduce their emissions. But this reduction remains insufficient and less developed countries continue to increase theirs;
- We get an overall stable emissions trajectory over the coming years. We are far, far from the desired trajectory in a 1.5°C scenario.
Market review: Artificial paradises
- Collapse in the cryptosphere
- United States: Falling inflation triggers equity market jump
- US 10-year yields down 40bp in 4 days to 3.81%
- Swap spread ease in wake of ECB measures
Chart of the week
The lower-than-expected US CPI report sparked a sharp and broad-based rebound in risky asset markets.
The FANG index including the major US technology stocks recovered 5% upon the CPI realease. The magnitude of the stock rally over two trading sessions reached 12.7%.
This sudden change in trend, linked to interest rate sensitivity of growth stocks and short covering, is all the more surprising since US tech companies have recently made headlines with restructuring plans and cost cutting measures.
Figure of the week
More than 130 related companies sought court protection at Delaware federal court at the end of last week.
