January 31, 2019

Patience is a virtue

Share on facebook
Share on twitter
Share on linkedin
Share on email

In Short

Sunny spots are rare this winter. Economic data in in Europe and China have continued to underwhelm. Key euro area indicators including PMIs, Ifo and Sentix are at multi-year lows, following a sharp contraction in industrial production in Q4.
Patience is a virtue
Share on facebook
Share on twitter
Share on linkedin
Share on email

Highlights:

  • Underwhelming macro data and lingering political uncertainties (trade war, Brexit, US government shutdown) offered little support to global markets into the new year.
  • Yet risk assets have been climbing a wall of worry since Christmas, rebounding nicely from a panic sell-off in December. More dovish central banks, Chinese policy support and hopes of a US/China trade deal are reassuring investors that policy makers will address downside risks.
  • We subscribe to Fed’s Powell underlying message: patience is a virtue. We trim but retain a pro-risk allocation tilt, slightly reduce our underweight in Govies and keep an overweight in credit.

Download the full publication below

PATIENCE IS A VIRTUE

Also interesting

Financial-and-technical-data-analysis-chart
July 30, 2021
Market Commentary

Market Commentary: Q2 reporting season is doing well but annual growth has peaked

size 3
July 29, 2021
Market Commentary

COVID-19 UPDATE Facts & Figures – 29/07/2021

federal-reserve-building-with-twenty-dollar-bill-on-grunge-texture-picture-id175716236
July 28, 2021
Market Commentary

MARKET COMMENTARY – The Fed: the recovery is on track, tapering is approaching