July 2022 in Figures

July 30, 2022

July was another active month for central banks in the face of high inflation, and investors almost assuredly moved wealth back into riskier assets to a greater extent than monetary officials would like to have seen.

June ended just two weeks after the Federal Reserve’s greater-than-predicted initial 75-basis point interest rate hike, and by end-July the Fed had implemented another 75-basis point hike, producing a three-move two percentage point change in the space of about two months. Nonetheless, the 10-year Treasury yields declined by 32 basis points in July, and comparable long-maturity yields dropped back even more sharply in Canada and many European economies.

Many other central bank benchmark interest rates also were raised in July, notably the ECB (+50 bps) but also including Canada (+100 bps), Hungary (+200 bps), South Africa (+75 bps), the Philippines (+75 bps), Pakistan (+125 bps), Chile (+75 bps), Hong Kong and Macau (+75 bps each), South Korea (+50 bps), Kazakhstan (+50 bps), and Paraguay (+25 bps). In a defiant sign that economic sanctions aren’t working sufficiently to deter the Russian war against Ukraine, the Central Bank of Russia cut its policy rate by 150 basis points.

Equity markets widely recouped part of their first-half heavy losses during July, and U.S. companies led this attempted comeback. Prices for gold and oil fell, while the price of Bitcoin, which had been slaughtered earlier this year, experienced a stellar rise of around 30%.

10-Yr Yield 07/29/22 06/30/22 July Change
U.S. 2.70% 3.02% -32 Basis Points
Germany 0.81% 1.33% -52
Japan 0.17% 0.22% -5
U.K. 1.86% 2.23% -37
Canada 2.60% 3.22% -62
Switzerland 0.36% 0.97% -61
CB Policy Rate 07/29/22 06/30/22 July Change
Fed funds target 2.25/2.50% +1.50/1.75% +75 Basis Pts
ECB deposit rate 0.0% -0.50% +50
BOJ policy rate -0.10% -0.10% 0
BOE Bank Rate 1.25% 1.25% 0
Swiss 3M Libor -0.25% -0.25% 0
FX 07/29/22 06/30/22 July Chg in $
EUR/USD 1.0226 1.0484 +2.5%
USD/JPY 133.26 135.71 -1.8%
USD/CHF 0.9513 0.9547 -0.4%
GBP/USD 1.2189 1.2172 -0.1%
AUD/USD 0.6994 0.6902 -1.3%
NZD/USD 0.6244 0.6247 0.0%
USD/CAD 1.2794 1.2873 -0.6%
USD/CNY 6.7442 6.6995 +0.7%
Equities 07/29/22 06/30/22 July Change
S&P 500 4130 3772 +9.5%
Nasdaq 12391 11029 +12.3%
Djia 32845 30775 +6.7%
Dax  13484 12784 +5.5%
Nikkei 27802 26393 +5.3%
Ftse 7423 7169 +3.5%
Canada TSE 19703 18850 +4.5%
Swiss SMI 11146 10741 +3.8%
Commodities 07/29/22 06/30/22 July Change
Oil, $ per barrel 98.62 105.89 -6.9%
Gold, $ per ounce

Bitcoin

1781.80

$24505

1807.01

$18731

-1.4%

+30.8%

Copyright Larry Greenberg 2022.  All rights reserved.  No secondary distribution without express permission.

Tags:

ShareThis

Leave a Reply

You must be logged in to post a comment.

css.php