Mankind invented a system to cope with the fact that we are so intrinsically lousy at manipulating numbers. It's called the graph.

Quick recap

• Last week’s relief rally was short-lived as this week became a reminder of how nervous markets are at the moment.
• Again, Powell promised to curb inflation and prevent a drift towards structurally higher inflation rates. The speech was widely perceived as indicating that the Fed continues to prioritize the fight against inflation over mitigating risks to economic growth and the labour market.
• Benchmark rates retraced across the curve, and 2-year Treasuries, an indicator of the market’s assessment of the peak of the current hike cycle, dipped below 3%.
• There was a notable dispersion in style factor returns. While the sell-off in the U.S. was led by Growth and Quality stocks, Value became the worst-performing factor in Europe as recession fears mounted.

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