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2022, A Favourable Year For The Markets; Average Upside Of Between +14%/+17%

Bankinter |Corporate results will be one of the major catalysts, but also the reduced impact of Covid-19, with new medicines to fight it. Inflation will moderate im the second half of the year and central banks will slowly normalise their monetary policies, which is reasonable against a backdrop of economic expansion. Whatsmore, financial conditions will be accomodative and liquidity will be high. We envisage an average upside potential for the…

Teresa Ribera

Empathy-Driven Markets

J.P. Marín Arrese | Ms Ribera, the Spanish Minister in charge of energy and environment, has warned electricity companies that lack of empathy towards their clients may undermine their stock performance as markets price-in such conduct. It wasn’t just a personal comment. She delivered it in the Parliamentary debate over the upsurge in the price of electricity providing no clue on how empathy-driven markets might work. Yet, one has the…

hedge funds

A Moment In Markets – The Big Movers Coming Up

Positive economic data from China last week gave markets the confidence that there is a way out of the ongoing slump for the global economy. But are the US and Europe going to paint an equally encouraging picture? The US will disclose its third quarter gross domestic product (GDP) growth numbers on Thursday 29 October while Eurozone’s figures will be released the following day. Quarter-on-quarter GDP change in Q3 is forecasted to be 29.9% for the US (after a decline of 31.4% in Q2) and 9.3% for Eurozone (after a fall of 11.8% in Q2). Risk assets will draw comfort from knowing that an economic recovery is underway globally.

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Uncertainty Pushes Rates To Unknown Limits

Financial markets remain volatile with the concerns about the virus spillover effect being the main market driver. After yesterday’s equity rebound, declines in the equity markets have resumed today, with market risk measures such as VIX soaring to 37, although moderated afterwards but remains above 30.

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Stock Markets Remain Vulnerable To Short-Term Correction

The People’s Bank of China pumps 1.2tn yuan into the financial system to protect the economy from the coronavirus Global stocks extended their rally last week despite concerns that the coronavirus will slow global growth. Experts at Julius Baer continue to argue that stocks are susceptible to a short-term correction and consider any weakness as an entry opportunity for long-term investors.


Gold: Tossed And Torn By The Virus

As investors are still struggling to properly price the impact of the coronavirus, volatility in financial markets remains elevated. Risk-on sentiment returned to the markets yesterday, putting pressure on gold. Barring a longer-lasting impact on Chinese growth, we do not expect much more fundamental short-term support from the virus for gold. However, on a longer-term horizon we still see upside and maintain a Constructive view.

China proposes major antitrust law overhaul, curbing internet titans

China Proposes Major Antitrust Law Overhaul, Curbing Internet Titans

Dave Yin (Caixin) | China is making major revisions to its antitrust law for the first time in more than 11 years to give it more teeth while reining in the dominance of the country’s internet goliaths.China is making major revisions to its antitrust law for the first time in more than 11 years to give it more teeth while reining in the dominance of the country’s internet goliaths.