The Nasdaq index hit a new record, led by the tech giants, while e-commerce stocks boosted the Chinese market to its best performance in five years. Government and corporate bond markets remained firm, despite cuts to economic growth forecasts. We look forward to dramatic profit declines for Q2, as the US reporting season gets underway this week.
With all the talk of the ‘new normal’ post lockdowns and forecasts of a V-shaped recovery, markets have rallied hard over the second quarter. Financial markets are awash with liquidity and there are promises of further support from central banks.
Improving data from major economies pushed equity markets higher, while also boosting inflation linked bond markets and gold. With few significant data points on this week’s radar, markets will likely focus on US unemployment claims and oil inventories.
It’s an asset class that might seem a bit marginal and more than a little mysterious. But since the first AAA-rated ‘green bond’ was launched by the World Bank in 2007, the market has grown enormously.
Architas, part of the global AXA Group, today announced the sale of its UK investment business to Liontrust Asset Management Plc (“Liontrust”). The UK investment business, which includes two regulated legal entities Architas Multi-Manager Limited and Architas Advisory Services Limited, consists of UK regulated funds and UK advisory business with around £5.6bn* in assets. Subject to regulatory approval and approval from Liontrust shareholders, it is expected the sale will be completed by the end of this year.
Equity markets took fright at an upward spike in US Covid-19 cases, while government bond markets reacted positively to weaker growth forecasts. Oil and gold also moved in opposite directions, contrasting the negative reaction to further big write-downs in the oil sector with sustained demand for gold.
The world’s major economies, the US and China, sent mixed signals on the pace of recovery, although in both areas the consumer is coming back strongly. The US Federal Reserve began direct buying of corporate bonds, giving a further boost to high yield markets. PMI data and further Covid-19 outbreaks will command the markets’ attention this week.
We discuss a risk off week, with negative catalysts being US Federal Reserve (Fed) commentary on the pace of recovery and downbeat forecasts from the OECD. A strong week for government bonds was not matched in high yield bond markets, although inflows into the asset class remain strong. The week ahead will be dominated by further comments from central banks in the US, UK and Japan, while ‘intensified’ Brexit trade talks reflect the fast approaching deadline for extension.
Equity markets have rallied sharply from the lows seen in March. Confidence is back, boosted by huge government stimulus and central bank support, and markets are now racing to get ahead of the forecast V-shaped recovery.
Strong US jobs data provided a catalyst to equity markets, which are anticipating a V-shaped recovery. Sterling strengthened in the face of Brexit uncertainty, while in high yield bond markets the ‘fallen angels’ were a key positive driver. This week all eyes will be on the US Federal Reserve meeting.
Equity markets had a good week as lockdown measures eased across the world and Europe and Japan announced recovery packages. But the UK stock market lagged somewhat and Brexit continues to cast a shadow.
Equity markets weakened on discouraging rhetoric from the US Federal Reserve, as well as rising US/China tensions. We outline a more stable backdrop for the oil price this week, with possible indications as to the recovery track for the US and China, the world’s two largest economies.
Today we discuss how markets are looking through appalling US unemployment data and grim economic forecasts, anticipating a sharp rebound later in the year. Also the oil price rebound, which could be hit by further storage capacity issues. We maintain a ‘wait and see’ stance, monitoring how the relaxation of global lockdowns evolves.
Today’s Covid-19-driven declines are clearly concerning, but markets inevitably have downswings as well as upswings and we’ve seen drops of this level before. So how can we provide some potential fund protection and position ourselves for any potential rebound?
The Covid-19 crisis has brought rare examples of good news as well as bad. While the IMF (International Monetary Fund) made savage cuts to estimates for global growth, they also forgave debts of $214 billion owed by the world’s poorest countries.
In the week when Shell took the historic decision to cut their dividend, we discuss developments in the oil market and prospects for improvement in the supply/demand balance. We then look forward to US unemployment data at the end of the week and indications for GDP growth.
Further stimulus measures across the globe met weaker earnings expectations, while oil grabbed the headlines. High yield markets had a poor week, as the US Federal Reserve (Fed) gave a reality check. We look forward to major central bank meetings this week, as well as earnings reports from the US tech giants.
It was a very strong week for the US last week with the S&P 500 Index up 3%. This was driven by the consumer discretionary (or non-essential goods and services) sector, prompted by really strong performance for Amazon.
Equity and credit markets rallied strongly on further support from the US Federal Reserve, as the Covid-19 infection curve appeared to flatten. We consider the scale of oil production cuts in the face of falling demand, before looking forward to the US corporate reporting season.
Our discussion today focussed on the likely shape of the US recovery and the repercussions on the pace of recovery in China. We then unpack the latest gyrations in the oil price, as well as gold price weakness in the context of government bond market strength.
Equities rallied sharply as a $2 trillion US stimulus package restored some confidence to markets. High yield bonds had a better week and Ford became the latest ‘Fallen Angel’ to be downgraded from investment grade status. We consider the diverging performance between oil and gold, before looking ahead to US employment figures at the end of this week.
The discussion today focuses on recent volatility in financial markets and the steps taken to restore market confidence. We then outline Architas’ investment response and highlight the importance of staying invested through these periods of market turbulence.
Massive stimulus measures from governments and central banks caused markets to whipsaw in the face of crumbling forecasts. Commodities markets, such as oil and gold, were hard hit by selling. We reiterate our investment response in the face of these moves.
Central banks and governments have taken unprecedented steps to support economies hit by the spread of coronavirus. We discuss the scale of these moves and consider what it might take to restore confidence and to calm financial markets.
Discussion focused on another surprise rate cut from the US Federal Reserve and its immediate impact on equities, bonds, gold and oil. Our Deputy Chief Investment Officer looks at continuing government and central bank responses to the coronavirus outbreak and assesses the prospects going forward.
It is known as an ‘exogenous shock’, an event not predicted by forecasting models which has far-reaching effects. Just like dropping a pebble in a pond, the initial impact can be small but the ripples spread wide.
The spread of coronavirus has created a spike in volatility, with most major stock markets posting big losses at the end of February. Despite this, at Architas we believe investors should not panic. Here we explain why.
The coronavirus shock brought sharp corrections to equity markets, while US government bond markets jumped in hopes of an interest rate cut later this month. We consider encouraging data from China as well as oil production cuts at the OPEC meeting this week.
Our panel of investment experts discusses the sharp market reactions to the spread of the virus. Equity market nervousness has been met by increased interest in safe havens. We comment on our recent tactical asset allocation adjustment and what it would take for the markets to regain confidence.
The race for the US presidency is gaining attention across the globe. After all, the President of the United States has the power to influence stock markets, trade and politics on an international scale. Here we give you a roundup of what to expect in the run-up to the election and how this could affect your clients’ investments.
As the spread of the coronavirus reverberated around the world, our expert panel look at the impact on US PMI data, Apple’s warning of a hit to turnover for this quarter and the supportive response from the People’s Bank of China. The price of gold has responded well to turmoil elsewhere in the markets.
January was dominated by external shocks that investors would have struggled to foresee. These included military aggression between the US and Iran, and the emergence of the Covid-19 coronavirus in China’s Wuhan province.
The standout events last week was the continuing spread of the coronavirus. Our expert panel discuss how the US market looked past the impact of coronavirus and responded positively to good earnings figures and economic data.
30 January 2020: Matthieu André has today been appointed as CEO of Architas. Matthieu replaces Hans Georgeson who after 10 years with Architas has decided to pursue other opportunities outside the AXA Group.