Skip to main content
logo
  • Investment Strategies

    Investment Options

    • Alternatives
    • Beta Strategies
    • Equities
    • Fixed Income
    • Multi-Asset Solutions

    Capabilities & Solutions

    • ETFs
    • Pension Strategy & Analytics
    • Global Insurance Solutions
    • Outsourced CIO
    • Sustainable Investing
  • Insights

    Market Insights

    • Market Insights Overview
    • Eye on the Market
    • Guide to the Markets
    • Guide to Alternatives
    • Market Updates
    • Guide to China

    Portfolio Insights

    • Portfolio Insights Overview
    • Alternatives
    • Asset Class Views
    • Currency
    • Equity
    • ETF Perspectives
    • Fixed Income
    • Long-Term Capital Market Assumptions
    • Sustainable Investing
    • Strategic Investment Advisory Group

    Retirement Insights

    • Retirement Insights Overview
    • Essential Elements of a Sound Retirement System
    • Building Better Retirement Portfolios
  • Resources
    • Center for Investment Excellence Podcasts
    • Insights App
    • Library
    • Webcasts
    • Multimedia
    • Morgan Institutional
  • About us
  • Contact Us
  • English
  • Role
  • Country
  • Morgan Institutional
    Search
    Search
    Menu
    You are about to leave the site Close
    J.P. Morgan Asset Management’s website and/or mobile terms, privacy and security policies don't apply to the site or app you're about to visit. Please review its terms, privacy and security policies to see how they apply to you. J.P. Morgan Asset Management isn’t responsible for (and doesn't provide) any products, services or content at this third-party site or app, except for products and services that explicitly carry the J.P. Morgan Asset Management name.
    CONTINUE Go Back
    1. Weekly Market Recap

    • LinkedIn Twitter Facebook

    Weekly Market Recap

    Asia Pacific

    2022/06/27

    Week in review

    • UK CPI inflation rises to 9.1% y/y
    • Eurozone composite PMI fell to 51.9
    • U.S. composite PMI fell to 51.2

    Week ahead

    • U.S. PCE inflation
    • Japan unemployment rate
    • China PMI manufacturing

    Thought of the week

    Markets received some positive news over the past week as the U.S. Federal Reserve (the Fed) announced that all 33 major U.S. banks passed their annual stress test. In the hypothetical economic stress scenario conducted by the Fed, it was estimated that while U.S. banks could lose up to USD 612billion, they would maintain an equity capital ratio (a measure of leverage) of 9.7%, which is more than double the minimum requirement of 4.5%. Importantly, robust capital levels mean banks would be able to continue lending to households and businesses even under unfavorable economic conditions. Confidence in the banking sector’s ability to weather a severe economic downturn may provide fodder to extend the recent outperformance of Value over Growth equities: since the start of the year, the MSCI U.S. Value index has outperformed the MSCI U.S. Growth index by more than 15%. The results of the stress test mean banks may be able to boost the return of capital to shareholders through share buybacks and dividend payouts, free of the Fed’s restrictions put in place during the pandemic. While dividend payments should continue to hold up, buybacks may be delivered at a smaller scale compared to last year given uncertain economic conditions ahead. That said, the rising rate environment will continue to support net interest margins for banks, which should provide tailwinds for Value and Financial sector stocks in the near-term.

    Recent stress test result could extend year-to-date outperformance of Value stocks

    Index, rebased 31/12/21 =100

    Source: : FactSet, J.P. Morgan Asset Management. Data reflect most recently available as of 25/06/22.

    0903c02a82467a72

    • Market Insights
    J.P. Morgan Asset Management

    • About us
    • Investment stewardship
    • Privacy policy
    • Cookie policy
    • Binding corporate rules
    • Sitemap
    Opens LinkedIn site in new window
    J.P. Morgan

    • J.P. Morgan
    • JPMorgan Chase
    • Chase

    READ IMPORTANT LEGAL INFORMATION. CLICK HERE >

    The value of investments may go down as well as up and investors may not get back the full amount invested.

    Copyright 2022 JPMorgan Chase & Co. All rights reserved.