S&P 500 and Dollar Have Different Views for Last Week of September

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S&P 500, Dollar, EURUSD, USDJPY and Evergrande Talking Points

  • Despite a plunge to start this past week, the S&P 500 closed out the week with a slight gain over the previous Friday – defying seasonal norms
  • Monetary policy will remain a theme in relative and aggregate channels next week though there are noticeably fewer monetary policy events
  • Top event risk ahead includes: a US consumer confidence report; US PCE deflator; Chinese PMIs and a central bank forum bringing together major central bank leaders

A Remarkable Reversal for the S&P 500 and Risk

This past week opened to an incredible gap lower for the S&P 500 and its peers founded on the uncertainties surrounding Chinese property developer Evergrande. The metaphorical fuse was lit and a full reversal of risk trends could have been pursued with the backing of seasonal expectations and compounding systemic issues (such as the…

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