- Category: Breaking news
- Created: Monday, 05 March 2018 13:17
- Written by LMF La mia finanza
Columbia Threadneedle maintains a positive outlook on Japan and expect more tailwinds (rising corporate profits, tax cuts, Olympics-related demand, rising immigration) to continue.
US equity indices have tended to go up with bond yields since the turn of the century. History suggests the correlation will remain predominantly positive until 10-year yields reach 5% and we are not convinced lower growth/inflation will change that. An analysis of the dividend yield gap gives the same answer.
As the Five Stars Movement has shelved its plan for a Referendum about the euro membership, markets have relaxed about the Italian elections with spreads against Germany still close to two-year lows.
While February economic surveys suggest some slowing, latest PMIs continue to signal solid economic expansion.
Technology remains an important theme. Against a backdrop of changing demographics, it is crucial that companies and investors get technology right.
In reaction to today’s comments from Jermone Powell, chair of the US Federal Reserve (Fed), Michael Metcalfe, global head of macro strategy at State Street Global Markets; and Sophia Ferguson, senior portfolio manager for active fixed income and currency at State Street Global Advisors, offer their views.
The abrupt reversal of equity markets in the last few weeks has sent shivers down investors’ spines, particularly as momentum was the dominant factor behind the rally that preceded it.
An explosive start to 2018 has punctured a period of unprecedented market calm. 2017 had provided a particularly challenging hunting ground for stock-picking contrarians, as volatility measures hit record lows.
Last quarter GDP growth was solid, in line with expectations as well as leading indicators. In the details, a strong contribution came from Germany (+0.2ppt of quarterly growth), France (0.1ppt), the Netherlands and Spain (0.05ppt), confirming a broad-based recovery.