Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
A quick look at the degree of tightening observed in financial conditions in recent months suggests that the expeditious round of Fed tightening, in addition to the related move lower in U.S. equities, widening of credit spreads and the bid in the USD, is working its way through to the U.S. economy, with the velocity and scope of the tightening of U.S. financial conditions comfortably outstripping that seen in the UK & the Eurozone (albeit from historically depressed levels). The rate of change and scale of the move observed in U.S. financial conditions, aided by the Fed’s focus on fighting inflation, even if it harms economic growth, has led to increased recession-related worry and played into the containment of medium-term market-based U.S. (and wider) inflation expectations, which operate comfortably off of their cycle highs (a dynamic further aided by the recent, well-documented fall in broader commodity prices).
Fig. 1: Goldman Sachs’ U.S., Eurozone & UK Financial Conditions Indices
Source: MNI - Markets News/Goldman Sachs/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.