Expectations for euro area growth this year have remained solid, despite steady downgrades of growth forecasts for other developed economies. But the data flow over the next few months may prove challenging to that relative optimism for Europe.
The size and duration of QE is currently the single most important driver of euro rates and government bond yields. It’s the conviction of UBS chief investment office Wealth Management.
We take equities down to benchmark and reduce our year-end S&P 500 target to 2,050 from 2,150 (having already reduced our equity weightings to the lowest since 2008 on December 2nd).
Our tactical indicators gave a buy signal on January 21st (which normally leads to a 3-4% bounce, which we have had), but we have decided to turn more cautious on the back
The BoJ’s decision to move into negative territory for the first time in its history has reinforced market expectations of depo rate cuts by the ECB in 2016
Gold resurgence under scrutiny as it reaches the top of a multi-year wedge pattern. Meanwhile, both Brent and US crude continue to consolidate as we await a breakout for direction.
Frontier Markets have a number of attractive features for investors, particular in the current market environment of slow growth in all major economies, rich equities and bonds and low bank deposit interest rates. But private and institutional investors tend to think of Frontier Markets as unexplored. The economies of these countries are generally in earlier stages of economic development, and their capital markets less mature than Emerging Markets.
On 1 March 2015, the transitional period for distributors and foreign funds distributed in Switzerland to become compliant with new regulation expired. Participants are working out how best to navigate and adapt to the new distribution regulatory framework. OpenFunds thoughts it would help by putting together a Q&A covering the most-asked questions about regulatory framework and bodies.
Stocks continued to plummet last week. The Dow Jones Industrial Average lost 2.19% to close the week at 15,988, while the S&P 500 Index declined 2.18% to 1,880, and the Nasdaq Composite Index fell 3.34% to 4,488. In fixed income, the yield on the benchmark 10-year U.S. Treasury fell from 2.11% to 2.03% as its price rose.
