Calm is returning to the markets, but it remains to be seen whether this will last
Has the beginning of a new year brought investors to their senses? This is a legitimate question given the dramatic difference in the way in which markets have performed over the last two months. Rising equity markets, the rally in corporate bonds, higher 10-year US Treasury yields and a more stable US currency are all examples of…
The end of the cycle is upon the financial community
One month seems indistinguishable from the next for investors, with November proving just as complicated as October on the financial markets. While the disruption seen in October, on the stock markets in particular, can be attributed to a downward adjustment in 2019 economic and earnings forecasts, November’s movement seems…
Are investors starting to have confidence in the future again?
After a turbulent summer, equity markets re-bounded in early autumn. However, the air of uncertainty that drove the erratic performance of stock markets over the summer still persists.
Although investors were reassured by the United States’ more moderate tariffs on Chinese goods, the threat of a trade war has…
What if the dollar were the main problem?
Although the situation was not catastrophic, there was no real rest this summer for financial markets, and this applies to equities, foreign exchange and, to a lesser extent, bonds. The addition of the Turkish crisis to recurring international trade disputes and the medium-term outlook for the global economy quite rightly led to a…
Clouds on the horizon for summer 2018
It is sometimes said that meteorologists make better predictions than economists; if nothing else, this certainly puts the wisdom of listening to the latter into perspective. As summer dawns and storm clouds gather on the international horizon, we could be forgiven for wishing we had a weather forecast to shed light on the economic and financial outlook.
Europe once again in the eye of the storm
To put it mildly, the political sphere is far from quiet at present. Donald Trump’s refusal to extend the Iran nuclear deal and the twists and turns concerning the summit between Kim Jong-un and the US President are clear examples of the current tense geopolitical climate.
The dollar stages a comeback
Under pressure for the past few months, the dollar overcame all odds and bounced back in April, as we were expecting. Beyond this, the renewed strength of the dollar helps to explain – at least partially – a number of significant events that have affected the financial markets in recent weeks.
Markets racked with doubt
March was not an easy month for investors as, in some weeks, risky assets experienced the kind of volatility seen at the end of January. Uncertainty about US monetary policy, which the Federal Reserve’s recent decision to raise key interest rates by a quarter of a point did little to quell, remained central to traders’ concerns.
