Market has been anticipating rate rise towards summer end, but raft of weak data will force backtrack, analysts say
There is a clear opportunity to buy emerging market assets whenever risk averse events are triggered in the developed markets, and current worries over US trade policy and rate hikes could signal the latest entry point, says Ashmore’s Jan Dehn.
The European central banks’ market interventions, such as their asset purchase programme, has created the “unintended consequence” of the institutions becoming a dominant decision maker in investments, and has led to risk not being priced properly, according to ex-ECB chief economist Jürgen Stark.
Emerging market debt has been the best-selling asset class with European investors this year. But flows turned negative in late September against a backdrop of a hawkish Fed and a strengthening dollar.
The European Central Bank (ECB) will begin unwinding its monetary stimulus programme this year but investors shouldn’t expect a rate hike until at least 2019, according to analysts at Lyxor Asset Management.
The damage caused by hurricane Harvey will dampen GDP growth to an extent that will force the Fed to forget about hiking rates further this year, it was claimed.
Friday’s US inflation report suggests the recent streak of soft CPI inflation may be more persistent than the Fed initially believed, decreasing the likelihood of further rate rises.
It’s time to take a few chips off the table and up the quality of your bond portfolio as the reflation trade has run its course, believes Ariel Bezalel, manager of the €9bn Jupiter Dynamic Bond Fund. But should you really sell in May?
The third 0.25% interest rate hike of this upcycle from the US Federal Reserve begs five questions, all of which have implications for the US, the globe and portfolios.
The Federal Reserve’s decision to raise its benchmark rate for the second time in three months, has led to speculation of further rises this year, with another four to come in 2018.