Market Commentary

 

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  • Market Commentary – July 2017 12-Sep-2017

    Global Overview Developed Markets: Global monetary policy moving onto a less accommodative pathPositive growth momentum in the US continues despite the short-term weakness seen in core inflation data and GDP. In June rates were raised 25bps and in the most recent FOMC meeting, the Fed suggested that financing conditions remained accommodative which provides leeway to continue tightening. Recently published US job data confirmed the health of the job market. The US central bank is therefore...

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  • Market Commentary – April 2017 03-May-2017

    Market Commentary – April 2017 South Africa slips below investment grade after 17 years The global macro-economic backdrop remains supportive with global GDP growth approaching its pre-financial crisis trend of 3.5%p.a.; a result of synchronous growth amongst the major economies, something notably absent in the past few years. The recovery in manufacturing activity is even stronger; as reflected by the Purchasing Manager Indices and Industrial Production series. In the particular cases of...

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  • Market Commentary – January 2017 03-Feb-2017

    4Q16 Market Commentary Global risk-on rally trumped by the reflation trade in the last quarter 2016 will be remembered as a choppy year for equities with the global risk-on rally supporting markets for most of the first three quarters of the year and with political surprises periodically wrong-footing markets in the latter half of the year. Global markets experienced a seismic shift in investor psyche from the risk-off environment which had defined investment markets since 2011 to a risk-on world...

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  • Market Commentary – October 2016 10-Nov-2016

    Brexit fallout short-lived The surprise outcome of the Brexit vote in the UK, during the last week of June, completely wrong-footed markets leading to a sell off of UK Pound, trillions wiped off global markets and a resurgence of safe haven assets; in particular gold, the US dollar & developed market bonds. By early July, European and Japanese bond bonds hit all-time lows with almost $10 trillion of these bonds having dipped into negative territory.

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  • Market Commentary – June 2016 18-Sep-2016

    US Fed and Brexit dominate the global stageFollowing a shaky start to the year in January, the first quarter of 2016 will be fondly remembered as a ‘risk-on’ rally, which saw the broad basket of risky assets gain favour amongst investors with a consequent outperformance of less risky assets. The key triggers for this renewed risk appetite was a change in tone from the U.S. central bank (Fed); signalling a more subdued outlook for U.S. interest rate hikes (than previously guided), increased...

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