Bonds & Equities Taking stock of the US election fallout With the dust settling on Trump’s victory earlier this month, this Update takes stock of what has happened across currencies, bonds, and equities; the reasons for these moves; and what we think will... 22nd November 2024 · 5 mins read
FX Markets Update Revising our currency forecasts to account for Trump The US dollar has rallied sharply since the US election last week – as we had expected it would in the event of a Trump win. Based on our assessment of the new policy outlook in the US, we think the... 14th November 2024 · 7 mins read
Global Markets Update New market forecasts ahead of a new Trump presidency We have revised some of our key market forecasts in response to Donald Trump’s victory and the news that the Republicans are on course to regain full control of Congress. These include higher... 7th November 2024 · 5 mins read
Bonds & Equities How worrying is the surge in Gilt yields? While the market fallout from yesterday’s UK budget announcement is still a very long way from the 2022 “mini-budget” debacle, the surge in Gilt yields and fall in sterling over the past couple of... 31st October 2024 · 5 mins read
FX Markets Update Taking stock of the outlook for the renminbi The depreciation pressure on the renminbi has abated over recent months and the USD/CNY rate is currently trading around our end-2024 target of 7.10. But with US interest rate expectations on the rise... 21st October 2024 · 5 mins read
Latin America Economics Update Mexico and what to expect from President Sheinbaum We held a Drop-In yesterday to discuss what investors should expect as Claudia Sheinbaum takes over the presidency in Mexico. A recording of the event can be found here. This Update answers some of... 2nd October 2024 · 6 mins read
Capital Daily Is the easing cycle already priced in? Markets barely reacted to the Fed’s 50bp rate cut, on balance, and our base case is that further cuts won’t move the needle too much either. In view of the broader interest we are sending this early... 19th September 2024 · 4 mins read
Global Markets Update Depreciation in Mexican peso may have a bit further to run Despite the peso’s recent rebound, we suspect that an unstable political and economic outlook means that it, and Mexican financial assets more generally, will perform poorly over the next year or so. 17th September 2024 · 4 mins read
FX Markets Update RBNZ cuts could pile the pain on New Zealand dollar We now think the RBNZ will be one of the few central banks to cut rates below neutral this cycle, which would be bad news for the New Zealand dollar. In view of the wider interest this FX Markets... 13th September 2024 · 4 mins read
Asset Allocation Update The long arm of the PBOC and prospects for China’s bonds Even though the PBOC is trying to prop up local government bond yields while the Fed is gearing up to cut rates, we think bonds in China will fare a bit better than those in the US. 6th September 2024 · 5 mins read
Global Economics Update Risks to the global economy: your questions answered We held online Drop-In sessions earlier this week to discuss the outlook for major DM and EM economies and the risks that they face as we look forward to 2025. (See a recording here.) This Update... 5th September 2024 · 8 mins read
FX Markets Update We think Asian currencies’ rallies will slow, not stop We expect most Asian currencies to make further gains against the US dollar over time, even if their biggest rallies may now be behind them. 27th August 2024 · 5 mins read
FX Markets Update The outlook for the US dollar as Fed cuts approach With the Fed set to finally start loosening policy and a soft landing still looking like the most probable outcome for the US economy, we think unfavourable rate differentials and continued robust... 21st August 2024 · 4 mins read
Asset Allocation Update Gilt yields and sterling may have further to fall While expectations for interest rates in the UK have already fallen by 40bp by end-2025 since mid-July, our projections for UK CPI inflation to remain below the 2% target for much of 2025 and 2026... 15th August 2024 · 3 mins read
Global Markets Update What to make of the market summer squall Conditions have stabilised after a turbulent few weeks in financial markets, and we expect the rebound in equity markets over the past week or so to continue. Our assessment is that the market fallout... 15th August 2024 · 5 mins read
FX Markets Update What to make of the latest moves in EM currencies Heightened US recession worries have helped unwound some of the stretched positions in high-carry EM currencies, resulting in their exchange rates moving closer to their “fair values” (judging by our... 9th August 2024 · 4 mins read
