Julien Ponthus shows you a glimpse at tomorrow’s markets.

In financial terminology, capitulation refers to the moment that investors give up hope on a rebound in markets and try to salvage what is left by selling their stock.

Evidently, Friday’s Wall Street volte-face during trading hours showed that the dreaded moment didn’t come through after Wall Street pulled out from bear market territory.

Investors have seen a ray of hope in the current market turmoil, and that is volatility. Volatility has maintained a level well below levels attained during past selloffs.

Still, even if the S&P 500 has managed so far to avoid closing 20% down from its January highs, its 18% slump year-to-date, combined with its longest losing streak since the dotcom crash of 2001 is fuelling fears for what’s to come.

So long as inflation is not out of control, it will arguably take chaos across stock markets for the Fed to initiate the so-called “Fed put” and allow the U.S. Federal Reserve (US Federal Reserve) to stop its aggressively tightening policy.

However, short-term stock futures suggest a more positive session in Europe and the U.S., despite losses from Asia, especially in China. Beijing has reported the largest number of COVID-19 related cases.

Markets were also affected by rising inflation and slower growth. Singapore reported that its key consumer price index was rising at the fastest rate in 10 years, while Vietnam said it would take a lot of work to reach its growth goals for 2022.

Markets should be more informed by key developments on Monday

Since 2014, the biggest jump in asking prices for UK properties has been seen in May

Vice PM warns that Vietnam faces a “huge challenge” to reach its 2022 growth goal

Germany’s IFO Survey

Siemens Energy CEO: The wind turbine supply chain will not get any easier

– Speaker corner: Robert Holzmann of the European Central Bank, Joachim Nagel. Andrew Bailey is the Governor of Bank of England. Federal Reserve Bostic.

– Meeting of the Euro zone Finance Ministers to discuss fiscal rules reform and bank union.

Graphic: S&P 500 bear markets – https://fingfx.thomsonreuters.com/gfx/mkt/klpykodqmpg/Pasted%20image%201653065756392.png

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