Overall Market Backdrop, January

• On 19th January, the U.S. government hit its borrowing ceiling of $31.4 trillion (as voted for back in December 2021 in Congress), raising concerns that any form of default would cause catastrophic effects on both domestic and global economies.
• Global equity markets started the year strongly, with the S&P 500 climbing to its best level in nearly eight weeks, supported by mega-cap tech and growth stocks reporting actual EPS (Earnings Per Share) well above estimates.
• As we write today, inflation is elevated, but on its way down. The U.S. passed peak price increases over the summer, whereas high energy costs have kept inflation in Europe higher for longer, but recent readings show the beginnings of a decline.

Click here to read more