It may be time to reduce equity exposure in favour of other asset classes Following three months of solid equity performance, and acknowledging the risk that the Fed could be making an error in tightening policy now, it may be time to reduce equity exposure in favour of other asset… Read More »
Goldman Sachs Asset Management -
On December 16, the US Federal Reserve (“Fed”) announced a well-telegraphed 25bps rate hike to 0.25%-0.5%—the first increase in a decade. The policy remains extraordinarily accommodative This is the first small step toward interest rate normalization since the financial crisis. The statement cited sufficient improvement in the US economy and… Read More »
The U.S. Federal Reserve has raised its key interest rates by 25 basis points, as widely expected. At the same time, the quarterly outlook on unemployment, economic growth and inflation was basically unchanged from the September FOMC meeting. The interest-rate guidance provided by the FOMC members for the coming three… Read More »
The year-end holiday season is a time of reflection: a chance to look back at what has transpired over the previous year and look ahead to the next 12 months.In time honoured tradition, let’s look into our crystal ball to see what 2016 has in store for selected Asian nations.… Read More »
A cut in the ECB’s deposit facility rate to minus 0.3%, a six-month extension of its asset purchase programme March 2017, reinvestment of the principal payments and inclusion of regional and local debt among the eligible assets: in announcing these measures [on Thursday], Mario Draghi doused market expectations. Equities have… Read More »
Cyclical factors: deceleration in China, gradual tightening of financial conditions as the Fed normalizes interest rate policy, commodity price weakness, capital outflows and country-specific currency depreciation, debt deleveraging and tepid domestic demand. Modest Growth Acceleration But Downside RiskThe Emerging Markets (EM) are expected to grow by 4.3% in 2016, modestly… Read More »
Hans Bevers -
Draghi left the door open for further actions if necessary mentioning “the asset purchase program could run beyond March 2017 if necessary and in any case until the Governing Council sees a sustained adjustment in the path of inflation” If inflation should be more than welcome to dilute the huge… Read More »
The set of new easing measures by the European Central Bank (ECB) was at the lower end of elevated markets expectations, but does not change our expectation of a continued moderate economic recovery The ECB announced various easing measures yesterday, but most were just at the lower end of expectations:… Read More »
Length of QE program extended and a deposit rate cut. Market reaction suggests expectations were too high At yesterday’s meeting of the European Central Bank (ECB), President Mario Draghi announced a suite of measures to further stimulate the Eurozone economy and effectively prolong the bank’s quantitative easing (QE) program. The… Read More »
With the Federal Reserve starting on a series of Fed Fund rate hikes from 16 December 2015, US money and credit markets will be on the path towards normalisation after seven years of abnormally low rates. This is a sign that, despite the weakness in emerging economies, the… Read More »
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