As we enter the second half of 2019, Goldilocks continues to walk a tightrope as US investors balance the potential benefits of Fed easing with continued weak global leading economic indicators, lingering trade jitters and elevated valuations, says Alec Young, FTSE Russell managing director of global markets research.
Equity markets have been rallying on the decisively dovish turn in Federal Reserve and European Central Bank positioning and optimism about the macro rewards such stimulus may bring. But, as highlighted in our latest overview of current macro conditions, we note a persistent mismatch between market expectations and incoming economic signals.
ECB President Draghi recently stated his concerns about the slowdown in the Eurozone economy and noted that the ECB still has plenty of scope to expand its QE asset purchase program (Sintra, Portugal, June 19) if required.
There’s an uplifting China story that is incredibly significant for global investors: the introduction of A Shares (available via the Northbound China Stock Connect Scheme Buy-and-Sell List)
Bond markets are three times larger than equity markets, so it’s surprising that while sustainable equity investment strategies have caught the imagination of investors across the globe, they have so far less successfully ignited fixed income investing.