ECB President Mario Draghi disappointed markets on Thursday. While the Bank delivered a 10 basis point cut to the deposit rate to an historic -0.3%, and extended the deadline of its asset purchase programme by six months, it kept the main refinancing and marginal lending rates steady at 5 and 30 basis points respectively.
If you had invested all your cash in dollars as a euro-based investor this year, you would have earned a better return than if you had emulated the MSCI World. Moreover, equity returns seem to have become completely tied to exchange rate movements.
An industry frustrated by the lack of clarity over MIFID II’s detailed requirements would welcome a year-long deferral.
The European Commission has said it is considering a delay of up to a year to the initiation of the second iteration of the Markets in Financial Instruments Directive. The European Fund and Asset Management Association (Efama) had recently been calling for such a delay.
Fund selectors in Barcelona, who again turned up in large numbers at the semi-annual Expert Investor Barcelona event last week, are yearning for another round of quantitative easing. They expect QE 2 will mainly benefit the equity markets, and they are selling off their bond holdings in unprecedented amounts.
Asia-based fund selectors overwhelmingly hold a strong preference for European equities, according to a survey at FSA’s investment forums in Hong Kong and Singapore.
For the first time in two years, European equities again are the most popular asset class with European investors. They took over the number one spot on the inflows list from multi-asset funds in September.
Swiss fund buyers are some of Europe’s most bullish investors, and are becoming more enthusiastic about European equities by the quarter.
In these times of great macroeconomic uncertainty, Munich’s fund selectors are looking for a hiding place in Europe, a more popular investment destination than ever before.
The Great Rotation from emerging markets to developed market equities is now in full swing: while investors pulled out a record €7.1bn from global emerging market equities in July, net inflows into their developed market equivalents were at their highest since February 2014.