Markets gyrated last week as hotter-than-expected US inflation data sparked an initial tech rout before recovering. Meanwhile better-than-feared earnings results and recession-resilient emerging markets outperformed. Though the likelihood of near-term rate cuts faded back, Australian reporting season launches on already lowered projections offering turnaround potential, especially for smaller companies that reset expectations during recent economic headwinds.

It was an up and down week for markets after a strong finish the prior week. Markets ended slightly up but the Fed pushed back on imminent rate cuts, putting some pressure on markets. However, positive earnings results overcame that and the US market hit new highs.

Amid a mixed bag of US corporate earnings and a strong jobs report fueling rate hike expectations, global markets face contrasting fortunes, highlighting the complexity of forecasting economic trends in a time of technological growth and geopolitical uncertainty.

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Last week saw a notable upswing in global equities, driven by optimism over a potential economic stimulus in China and a series of strong corporate earnings, particularly in the technology sector.

Risk assets broadly declined last week as economic data showed resilience and central banks pushed back against aggressive market pricing for rate cuts, puncturing investor hopes.

Despite a higher-than-expected rise in US CPI for December 2022, markets remained relatively sanguine over the implications for growth and monetary policy.

After powering markets in 2023, big technology companies have seen a sharp selloff in early 2024, challenging the notion of their invincibility. This pullback has raised questions about whether liquidity trends and the Fed's market interactions have been a key driver of recent optimism, rather than just falling inflation and economic strength.

Barring any mishaps between Christmas and New Year, after a turbulent 2022, global equities will end the year up around 20%, driven by a staggering rebound among technology and other growth stocks, epitomised by the so-called "Magnificent 7" mega-cap tech giants.

The last week in markets, as is often the case, was totally dominated by the US economy and monetary policy. In this case it was an encouraging inflation print on Wednesday, followed by the US Fed’s decision to keep rates on hold the next day.

It was a mixed week in global financial markets as the market continued to assess the likelihood of a hard or soft landing next year and the implication for inflation and interest