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The onset of other major conflicts and military-related crises have often seen global equity indices tumble, while moves in developed market government bond yields have depended on how energy prices and central banks responded. This suggests to us that …
4th March 2022
While Russia’s financial markets have unravelled since the country’s invasion of Ukraine, global markets have so far held up relatively well. But the mood seems to have turned a bit in recent days, and there are now some early signs of financial stress …
3rd March 2022
Omicron outbreak probably weighed on euro-zone retail sales in January (10.00 GMT) We think US non-farm payrolls rose by 600,000 last month (13.30 GMT) Read our latest research on the economic impact of the war in Ukraine here Key Market Themes So far, …
While the war in Ukraine may well push down the yields of long-dated developed market (DM) government bonds further in the near term, we think that a sustained rally in bonds is unlikely unless the war causes a sharp fall in output in major DMs, which, …
2nd March 2022
We think Euro-zone unemployment fell to its lowest recorded level in January (10.00 GMT) The US ISM services index probably declined further in February (15.00 GMT) Read our latest research on the economic impact of the war in Ukraine here Key Market …
Euro-zone inflation may have risen to almost 6% in February (10.00 GMT) We expect the Bank of Canada to hike rates by 25bp and begin QT (15.00 GMT) Read our latest reports on the Russia-Ukraine crisis here Key Market Themes While the war in Ukraine has …
1st March 2022
New sanctions on Russia have led to a sharp plunge in the ruble, and an effective freeze of most of the country’s financial markets. We think that the outlook now depends mainly on the extent to which this marks the start of an enduring break in Russia’s …
28th February 2022
Inflation may have reached 5.5% in Germany in January (13.00 GMT) The US ISM Manufacturing Index probably fell back a bit this month (15.00 GMT) Read our latest reports on the Russia-Ukraine crisis here Key Market Themes Aside from Russia , most major …
We expect the Bank of Canada to kick off its tightening cycle next week (Wednesday) Fading of Omicron virus wave probably boosted US non-farm payrolls in February (Friday) Read our latest reports on the Russia-Ukraine crisis here Key Market Themes After a …
25th February 2022
Amid all the volatility in global markets during the Russia-Ukraine conflict so far, we think there are several key lessons we can draw from the relative performance of bonds, equities and currencies that will help to inform how they might evolve from …
President Biden is expected to announce new sanctions on Russia later on Thursday You can watch a recording of our latest Drop-In event on Russia-Ukraine developments here Also see here for all of our reports on the economic and market implications of the …
24th February 2022
Raft of speeches by Fed officials may shed more light on the likely size of the first rate hike We think Mexico’s headline inflation edged down to 7.0% in mid-February (12.00 GMT) Read our latest reports on the Russia-Ukraine crisis here , and sign up for …
23rd February 2022
While the mood seems to have improved a little at the time of writing, the S&P 500 closed yesterday more than 10% lower than its recent peak at the start of the year, satisfying the criteria for a stock market correction for the first time since 2020. The …
We expect New Zealand’s central bank to raise its policy rate by 25bp (02.00 GMT) Sign up to hear our take on South Africa’s upcoming budget here Read our latest reports on the Russia-Ukraine crisis here Key Market Themes While continued escalation of …
22nd February 2022
The German IfO Survey is likely to show continued price pressures (09.00 GMT) We expect Hungary’s central bank to raise its base rate by 50bp (13.00 GMT) Read our latest reports on the Russia-Ukraine crisis here Key Market Themes We doubt that the rise in …
21st February 2022
The threat of sanctions has weighed on Russia’s stock market recently, but even if tensions abated we wouldn’t expect it to make big gains over the next couple of years. Russia’s equities have been volatile lately, but the big picture is that the tensions …
18th February 2022
We think that policymakers in New Zealand will hike interest rates by another 25bp … (Wed.) … but Korea’s central bank is likely to pause its tightening cycle (Thu.) Read our latest reports on the Russia-Ukraine crisis here Key Market Themes While …
With tensions between Russia and Ukraine continuing, the risk of a conflict with far-reaching economic consequences remains uncomfortably high. This Update considers what the impact on global financial markets has been so far, and the potential …
UK retail sales probably rebounded in January as the Omicron wave eased (07.00 GMT) We think Sweden’s CPIF inflation dropped back last month (07.00 GMT) Read our latest reports on the Russia-Ukraine crisis here Key Market Themes While investors have now …
17th February 2022
We think that the gap between the yields of 10-year German and Swiss government bonds will re-emerge over the next couple of years as the ECB tightens policy more quickly than the SNB. Prior to the pandemic, there was a spread between the yield of the …
FOMC minutes later on Wednesday may provide clues on the pace of rate hikes (19.00 GMT) The recovery in Australia’s labour market may have stalled in January (01.30 GMT) We think Turkey’s central bank will leave rates on hold on Thursday (11.00 GMT) Key …
16th February 2022
Even if tensions between Russia and Ukraine abated, we wouldn’t expect risky assets to gain all that much over the rest of this year and next, mainly because we think ongoing monetary tightening would continue to keep a lid on any rally. Risky assets have …
We think that Chinese consumer price inflation dropped back in January … (01.30 GMT) … but headline inflation in the UK and Canada probably held steady We expect US retail sales rebounded fairly strongly last month (13.30 GMT) Key Market Themes We expect …
15th February 2022
We expect the PBOC to cut its Medium-term Lending Facility rate by 10bp Employment in the UK probably fell by 75,000 in December (07.00 GMT) We think that Q4 GDP in Japan rebounded by 1.8% q/q (23.50 GMT) Key Market Themes Two unfamiliar and (largely) …
14th February 2022
We think that yields of 10-year emerging market (EM) local-currency (LC) government bonds may, in general, increase by more in Asia than in other regions by end-2023, in contrast with the pattern over the past year. The main exception is in China, where …
11th February 2022
Fed minutes may shed more light on the likelihood of a 50bp rate hike in March (Wednesday) We think the UK labour market remained tight in December (Tuesday) We expect the PBOC to cut the rate on its medium-term lending facility by 10bp (Monday) Key …
We continue to expect 10-year government bond yields across developed markets (DMs) to rise over the next few years. But given some upward revisions to our policy rate forecasts for the euro-zone, Australia and the UK we now think yields there will be …
The Omicron outbreak probably weighed on UK GDP in December (07.00 GMT) We think Russia’s central bank will hike interest rates by 100bp, to 9.5% (10.30 GMT) We expect US consumer confidence to have ticked up in early February (15.00 GMT) Key Market …
10th February 2022
We think upcoming “quantitative tightening” by the Fed will contribute to further increases in the yields of long-dated Treasuries this year and next. Investors have ramped up their expectations for Fed rate hikes lately, pushing Treasury yields to …
US headline inflation probably remained above 7% in January (13.30 GMT) We expect central banks in Mexico and Peru to hike their policy rates by a further 50bp… … and the Reserve Bank of India to raise its revere repo rate by 15bp to 3.5% (04.30 GMT) Key …
9th February 2022
Romania’s central bank may raise its policy rate by 25bp, to 2.25% We expect Thailand’s central bank to stand pat throughout 2022 (07.00 GMT) Brazil’s inflation probably rose further last month (12.00 GMT) Key Market Themes Despite recent increases, we …
8th February 2022
We expect Poland’s central bank to raise its policy rate by 50bp to 2.75% We think that the US trade deficit widened in December (13.30 GMT) Find our macro forecasts in our latest Global Economic Outlook here Key Market Themes We don’t think government …
7th February 2022
We doubt the S&P 500 will get much of a boost from upward revisions to earnings forecasts between now and the end of 2022, which is one reason why we expect the index to make only small gains this year. What’s more, notwithstanding their recent struggles, …
4th February 2022
China’s FX data could provide clues on PBOC exchange rate intervention (Mon.) US CPI inflation may have been close to its peak in January (Thu.) We expect rate hikes in Russia, Mexico, Poland and Romania next week Key Market Themes Today’s …
We think euro-zone retail sales fell in December (10.00 GMT) The Omicron wave may have caused US payrolls to fall in January (13.30 GMT) Virus cases may have weighed on employment in Canada as well (13.30 GMT) Key Market Themes Today’s hawkish surprises …
3rd February 2022
Sovereign dollar bond spreads have widened significantly in several Frontiers over the past couple of months, driven largely by country-specific factors. There are reasons to be hopeful that outright sovereign defaults can be avoided in Ukraine and Ghana, …
We expect the Bank of England to raise Bank Rate by 25bp, to 0.5% (12.00 GMT) In contrast, the ECB will probably keep its policy settings unchanged (12.45 GMT) We think the US ISM services index dropped sharply last month (15.00 GMT) Key Market Themes We …
2nd February 2022
Emerging market (EM) equities’ relatively low valuations may continue to hold them in better stead than equities in the US, but we think they will do less well compared to other developed market (DM) equities. One striking feature of January’s falls in …
1st February 2022
Euro-zone inflation probably fell back a bit in January (10.00 GMT) January’s US ADP employment data may give an indication of Omicron’s impact (13.15 GMT) We expect Brazil’s central bank to raise its policy rate by 150bp (21.30 GMT) Key Market Themes …
We expect the RBA to announce an end to its bond purchases (00.30 GMT) Omicron cases may have weighed on UK households’ borrowing in December (09.30 GMT) The US ISM Manufacturing Index probably fell this month (15.00 GMT) Key Market Themes While we think …
31st January 2022
We think that the BOE will hike by 25bp on Thursday … … but that the ECB will leave policy settings unchanged Omicron cases will probably have weighed on US employment growth this month (Fri.) Key Market Themes Even if this month’s falls in equity prices …
28th January 2022
Although government bond yields have already risen sharply this year, we think that they will continue to increase as central banks press ahead with monetary tightening this year and next. Higher yields will, in our view, weigh further on developed market …
GDP data for Germany may show that its economy contracted in Q4 (09.00 GMT) The Economic Sentiment Indicator for the euro-zone probably fell this month (10.00 GMT) We think Colombia’s central bank will increase the pace of its policy tightening (18.00 …
27th January 2022
The sell-off in Russia’s financial markets in response to the reassessment of the likelihood of conflict with Ukraine has pushed up the risk premium on Russian assets to a similar level to that which followed the annexation of Crimea in 2014. There is …
Fed likely to hint that a first rate hike may be forthcoming in March (Wed. 19.00 GMT) We think US GDP grew by 4.6% annualised in Q4 (Thu. 13.30 GMT) We expect central banks in Chile and South Africa to hike rates further (Wed. & Thu.) Key Market Themes …
26th January 2022
Even though the valuations of technology stocks have, in general, already fallen sharply in recent weeks, we suspect they may decline further over the next couple of years. This is one reason why we expect the sectors in which they are heavily represented …
25th January 2022
We suspect that the Bank of Canada will hold off raising rates this month (15.00 GMT) The Fed may hint that a first rate hike is likely to come in March (19.00 GMT) We expect Chile’s central bank to hike by 125bp (21.00 GMT) Key Market Themes Despite its …
Germany’s IfO Survey probably fell back a bit this month (09.00 GMT) We expect Hungary’s central bank to raise its policy rate by 30bp (13.00 GMT) The Omicron wave may have weighed on consumer confidence in the US (15.00 GMT) Key Market Themes US “big …
24th January 2022
Our baseline forecast envisages that US corporate bond spreads rise only slightly as the Fed raises interest rates over the next couple of years. But we think the risks to this forecast are skewed to higher spreads. We think that the Fed will hike …
21st January 2022
Fed officials may issue a hawkish statement at the upcoming FOMC meeting (Wed.) We expect central banks in Chile, Colombia and South Africa to hike rates next week Annual US wage growth may have reached 5% in Q4 (Thu.) Key Market Themes Although we think …
