Summer storms

Financial market instability has been in the ascendancy for much of the past few days as investors shunned risk assets and flocked to safe havens such as government bonds. A key catalyst was last Friday’s weaker-than-expected US employment report but there have been other factors - such as the BoJ’s monetary policy - that have amplified investor concerns. In our charts this week we home in on:

·         Financial market volatility

·         US data surprises and the Fed

·         Japan’s carry trade and the BoJ

·         Technology companies and equities

·         US banking conditions and financial imbalances

·         Supply side pressures and monetary policy