OptionsDesk broker Simon Hanouka speaks to Thomas Warner from Proactive London ahead of another big week in the world's financial markets. Hanouka highlights an address from Federal Reserve chair Jerome Powell scheduled for Monday, several important earnings calls in the UK and then non-farm payroll data expected in the US on Friday to round out the week.
He also draws attention to last week's spike in the VIX volatility index, saying that bearish sentiment was very much in evidence at MoneyWeek's annual investment conference on Friday.
The spectre of stagflation was even raised as one possible outcome of continued high interest rates, particularly if coupled with further increases in crude oil prices.
"If you look at the S&P500 year-to-date we're up 11%, but if you look at the equal-weighted version of the index without the Top-5 heavyweight tech stocks that have been carrying it, we are down for the year."