The View from 5th Avenue

The View from 5th Avenue – 26 October 2022

Initially, it looked like Microsoft (-7.7%) and Alphabet’s (-9.6%) reporting foibles overnight would not interrupt the current uptrend. Markets spent the first few hours of the day climbing higher in the face of tech-versity, assisted by the Bank of Canada after they surprised with a smaller than expected rate hike. Surely, a leading indicator for the Fed!? The USD 10yr even fell below 4% for a spell - another positive sign. But then came a dose of reality…or mean reversion.

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