The recent price action, and in particular, the sideways trend in many segments of the capital markets, reflects the challenge investors are having in separating the wheat from the chaff. The strong co-movement of risk assets has weakened. There is a lack of near-term visibility and contradictory signals, while the trends in place since March have …
Overview: Comments beginning with Powell before the weekend, and BOJ and BOE earlier today promising support have saw equity markets briefly stabilize after last week’s dramatic moves. The G7 will hold a teleconference this week, but speculation of a coordinated rate move does not seem particularly likely. Most of the large stock markets in the Asia …
Central Banks’ Words of Assurance have Short Life Read More »
Three forces are shaping the investment climate. The US-China trade conflict escalates at the start of September as both will raise tariffs on each other’s goods and are threatening another round in mid-December (US 25% tariffs on $250 of Chinese imports will increase to 30% on October 1). Some third parties may benefit from the …
A survey of central banks and sovereign wealth funds by Invesco sheds light on their investment plans. The traditional separation of markets and the state may be helpful for ideological arguments, but the real situation is more complicated. Central banks and their investment vehicles (sovereign wealth funds) are market participants. In some activities, such as …
Four central banks from high income countries hold policy is making meetings in the first full week of September. They are the Reserve Bank of Australia, Sweden’s Riksbank, the Bank of Canada, and the European Central Bank. Investors focus on the latter two. To be sure, no one expects the ECB to change rates or …
This Great Graphic composed on Bloomberg shows the balance sheets of the Federal Reserve, the European Central Bank, and the Bank of Japan as a proportion of GDP. The Federal Reserve ‘s balance sheet (as a fraction of GDP) is depicted in the green line. The primary reason it has drifted lower in the past …