UBP says bull market broadens as inflation risks keep Fed hike on table
SPY•Union Bancaire Privée said equity leadership was broadening, while inflation risks kept a Fed rate hike in December on the table. The equal-weighted S&P 500 rose 1.6% last week, compared with a 0.3% gain for the Nasdaq 100.
1. Equity leadership broadens
Union Bancaire Privée maintained a constructive equity stance with a modest bias toward the US, Japan and global technology ahead of third-quarter earnings. The equal-weighted S&P 500 rose 1.6% last week, outperforming the Nasdaq 100, which gained 0.3%.
2. Inflation and rates in focus
The ISM services prices-paid index jumped to 74, its highest level since July 2022, ahead of September CPI. Fed minutes showed unanimous support for September’s rate increase to 3.75%-4.00%, while markets priced in a 25-basis-point move in December. French 10-year OAT yields hovered near 4.9%, the OAT-Bund spread stood at 140 basis points, and the ECB signaled no intervention.
