We may not be outright US dollar bulls, but fundamentals and quantitative valuation factors both suggest that investors are currently too negative on the currency.
Core bond yields have pushed higher since the end of October. Is the move warranted by a shift in the fundamental picture, and where could we go from here?
As an increasing number of high yield corporates run into trouble we question whether the rise in corporate distress is a signal for more caution, or if lower rated credits now look more attractive at improved valuations.
Valuations for high quality credit may seem slightly stretched in the context of outperformance so far this year, but with various catalysts ahead, we believe the asset class will remain in favour.
Recent data from across developed markets has confirmed that underlying inflationary trends remain soft.
A summary of the factors driving global markets over the last month.
This weekly update provides a snapshot of changes in the economy and markets and their implications for investors.
Today the Bank of England’s (BoE) Monetary Policy Committee met, and voted by a majority of 7-2 to keep the policy interest rate at 0.75%.
We emerged with a cautious near-term view from our latest quarterly strategy meeting in early September. In our base case scenario, the global economy is expected to narrowly avoid recession and continue to grow, albeit much more slowly.
We are upgrading our view on equities to reflect early signs of an upturn in macroeconomic data, falling recession risk and an increase in the chance of at least a limited U.S.-China trade deal.