Financial markets welcomed signs of an easing in geopolitical tensions in October, with risk assets generally outperforming traditional safe havens. Ambrose Crofton, Market Strategist, considers recent movements in global markets.
The UK population are returning to the polls, in a bid to resolve the Brexit impasse. Abundant uncertainties about the election result argue against significant positioning in sterling assets in either direction.
The outperformance of US stocks relative to European counterparts has been one of the defining characteristics of equity markets in the post-crisis period. This piece highlights how two sectors—technology and financials—have played a key role in driving the divergence between the two regions over the past decade. We then debate the potential catalysts that could trigger a reversal of recent trends.
Predicting recessions is not easy and we do not claim to have uncovered a perfect crystal ball. What we have developed is a framework for tracking the risks, and potential magnitude, of a downturn in the US economy.
The times when investors were able to enjoy a quiet summer seem to be over. August was a volatile month for financial markets, with the VIX averaging 19, compared to 13 in July.
The investment landscape is changing as savers and governments place greater scrutiny on environmental, social and governance (ESG) factors. In this piece we highlight the driving forces and discuss the ways in which investors can include ESG factors in their investment decisions.
While no deal is not the most likely scenario in our view, the risks are rising. The UK outlook is binary. A Brexit deal could see sterling bounce to 1.40 against the dollar, but no deal on 31 October could see a further slump to 1.10.
With Boris Johnson confirmed as the new prime minister we’ve had a look at some of the areas of the market that could benefit from regime change.
July has been a remarkable month in some ways. The England and Wales men’s cricket team won the World Cup in the most dramatic of games, Egan Bernal became the first Tour de France winner from Latin America and the highest temperature ever officially recorded in the UK was set at 38.7C
After an exceptionally strong start to the year, financial markets paused for breath in July, with most asset classes delivering muted returns. The Federal Reserve (the Fed) lowered US interest rates for the first time in 11 years, and the European Central Bank (ECB) gave strong hints that an easing package is on the way.
A summary of the factors driving global markets over the last month.
The equity and credit markets are coping with trade uncertainty remarkably well. This appears to sit in contrast to the government bond market, which paints a considerably bleaker picture of the outlook. Indeed, all assets across the risk spectrum have rallied significantly this year.
Karen Ward, Chief Market Strategist for EMEA, looks ahead to the second half of 2019 and considers what might lie in store for global economies, including: Will the trade war prove fatal for the global economy? China’s commitment to ensure its economic ambitions remain on track, The challenges of asset allocation in this cycle
The new prime minister is likely to meet similar challenges given the nation – and as a result parliament - remains divided over what it wants from Brexit. But investors must understand the impact “no-deal” would have on sterling, stocks and gilts versus “change of government”.
A summary of the factors driving global markets over the last month.
Following the outcome of the European elections, Karen Ward, Chief Market Strategist for EMEA, will update us on her latest thoughts regarding Brexit and the impact on UK markets. She will consider whether a new Prime Minister or the prospect of a general election changes the outlook.
This is close to being the longest economic expansion on record. Nobody knows exactly when it will end, so it’s worth considering what investments could rise in value when equities and other risk assets fall during the next downturn.
A summary of the factors driving global markets over the last month.
Volatility in global markets has picked up over the last six to nine months. Iain Stealey, International Chief Investment Officer, Global Fixed Income Currency & Commodities Group and Portfolio Manager of the JPM Global Bond Opportunities Fund, looks at how the fund’s disciplined, dynamic approach is helping it to navigate this more uncertain environment.
Lead Portfolio Manager Clare Hart explains how the JPM US Equity Income Fund's exclusive focus on quality, value and dividends allows it to share in the long-term growth of the US stock market, while keeping a lid on volatility whenever the going gets tough.