A correction, not a bear market (yet)

The autumn has confirmed that 2018 will be ‘annus horribilis’ for global financial assets. Credit markets are bleeding and October was the worst month for stocks since 2012. November has only seen a tentative stabilisation.

  • Market Perspective

Highlights:

  • The autumn has confirmed that 2018 will be ‘annus horribilis’ for global financial assets. Credit markets are bleeding and October was the worst month for stocks since 2012. November has only seen a tentative stabilisation.
  • The trade war remains the wild card. But somewhat milder forward guidance from the ECB and Fed should offer support into the finish line.
  • While risks have risen, a deeper global slowdown is not around the corner. Amid more attractive entry points, we slightly extend a tilt towards IG credit and keep a small overweight in equities.

Download the full publication below

WHEN IT RAINS, IT POURS
DOWNLOAD
PDF
MORE INSIGHTS

RELATED INSIGHTS

READ NOW
COVID-19 FACTS & FIGURES
According to the IMF’s Managing Director, strong international cooperation on coronavirus vaccine could speed up the world economic recovery and add $9 trillion to global income by 2025. A WHO trial found that Remdesivir, Hydroxychloroquine, Lopinavir and Interferon have little or no effect on hospitalized Covid-19 patients. Gilead Sciences has questioned the findings of the WHO study saying data appeared inconsistent.
READ NOW
INCORPORATING QUANT SIGNALS INTO EU EQUITY SECTOR/STYLE STRATEGY: MAINTAIN A TILT TO CYCLICALS AND VALUE
We present an update of our proprietary equity valuation tool, based on quant models. It provides indications of over- or undervaluation for different sectors and styles of European equities, which is further enriched by our qualitative analysis. Currently, among European equity sectors, financials, energy, telecoms, and autos look undervalued while Pharma, utilities and software appear overvalued.
READ NOW
CHINA’S RECOVERY CONTINUED BUT A BIT SOFTER THAN EXPECTED
China's economic recovery continued in Q3 2020, although a bit softer than expected. Real GDP growth rose to 4.9% yoy, slightly below the Reuters consensus expectation of 5.2% yoy, but still a substantial upturn from the 3.2% yoy in Q2. On a quarterly base, growth dynamics softened to 2.7% qoq, after 11.7% qoq and -10% qoq in the two previous quarters.
LOAD MORE