Global Matters Weekly – 26 September 2022

Calm before the storm

by Mark Wright, CFA

— We now find ourselves in the eye of an inflationary storm

Not long back from my first holiday abroad since the pandemic, I was looking out my window longing to be back swimming in the warm Mediterranean ocean off the East coast of Mallorca. I will spare you the details of the travel chaos we experienced both ways, it was a lesson learned!

I was expecting 10 days of sun and nothing much else weatherwise, but it didn’t quite turn out like that. We were fortunate enough to witness not just one but two thunderstorms. I say fortunate because they served as a healthy reminder that it is always calm before the storm.

Market Snapshot

  • Global equities fell by 5.1% last week
  • The past week saw 500bps of global rate hikes across 15 central banks including The Federal Reserve and the Bank of England
  • Brent crude fell by 5.7% over the week to $86.15 a barrel
  • Gold fell by 1.9% to $1643.9 per ounce