Skip to main content
logo
  • Investment Strategies

    Investment Options

    • Alternatives
    • Beta Strategies
    • Equities
    • Fixed Income
    • Global Liquidity
    • 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
    • NEW 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

    2023/03/27

    Week in review

    • U.S. Federal Reserve raised rates by 25bps
    • Bank of England raised rates by 25 bps
    • UK February headline inflation surprised to the upside at 10.4% y/y

    Week ahead

    • U.S. real GDP, consumer confidence
    • Europe consumer confidence, unemployment
    • Japan retail sales, unemployment

    Thought of the week

    From September 2022 to January, the U.S. dollar weakened over 6%, leaving investors wondering whether we are now on a cycle of dollar weakness. There are reasons to believe so. From a valuation perspective, after ten years of strength, the dollar is close to its highest level since 2001 and expensive versus long-term variables that define its “fair value”, such as the current account. From a growth standpoint, from 2012-2022, the rest of the world only grew 0.5 percentage points more than the U.S., a stark difference versus the 2.3 percentage points from 2001-2011. This gap is set to widen again in favor of the rest of the world to 1.2 percentage points over the next five years. Finally from a policy perspective, from 2012-2019 and in 2022, interest rate differentials between the U.S. and other countries widened, as the Federal Reserve (Fed) was more hawkish than other central banks. By October, U.S. 10-year yields were 2.2 percentage points higher than other developed markets. Since then, yield differentials shrank to 1.7% as other central banks joined the tightening trend. This gap is set to shrink further should the Fed pause and soon start cutting rates, as seems more likely after the regional banking stress. An obvious beneficiary would be emerging market and Asian equities, which have historically benefitted from a weaker U.S. dollar.

    EM central banks are aggressively hiking Policy rate

    Source: FactSet, J.P. Morgan Asset Management. Data reflect most recently available as of 25/03/23.

    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 2023 JPMorgan Chase & Co. All rights reserved.