Weekly Global

This report analyzes the market implications of potential supply disruptions in the Strait of Hormuz, the Federal Reserve's hawkish policy shift, and record US equity issuance. UBS remains positive on global equities, recommending increased diversification and quality bond exposure.

Key Takeaways

• 1.The reopening of the Strait of Hormuz remains fragile, prompting a recommendation for broad commodity exposure to hedge against supply disruptions.
• 2.The Fed is maintaining a hawkish tone under new Chair Kevin Warsh; investors should focus on inflation data and favor high-quality short-to-medium duration bonds.
• 3.Record levels of US equity issuance are expected, but likely absorbable by the market due to robust share buybacks and strong fundamentals.

Table of Contents

• What to watch in the week ahead
• Can US-Iran talks ensure a durable reopening of the Strait of Hormuz?
• Iran latest developments and geopolitics
• The outlook on central banks
• Equity issuance
• Will the Fed's favorite inflation gauge add to hiking worries?
• Can equity markets absorb record stock issuance?
• Chart of the week
• Non-Traditional Assets

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