This time around, our Charts of the Week focus on the decline in real interest rates, which have this year reached remarkably low levels. It’s a trend that naturally begs the question “why?”
The Bank of Japan stepped up to the plate and unexpectedly raised its pro-growth and pro-inflation asset buying, boosting local stocks and sapping the yen.
What is the FOMC view on the US outlook? Its concern over downside inflation risks is limited. Dollar gains and cheaper commodities allow it to be patient in raising rates
The narrow re-election of President Dilma Rousseff was followed three days later by a surprise rate hike by the Brazilian central bank. Financial markets now await a clearer sense of policy direction which upcoming policy declarations and cabinet nominations should provide.
The week of 13-17 October saw a marked rise in volatility across financial markets, price declines on a wide range of risk assets and investor flight into safe havens such as US Treasuries and German bunds.
Wednesday 15 October 2014 saw a very volatile day in financial markets, highlighting the rapidly changing global economic environment
The recent cheapening of commodities could benefit India – a net commodity importer – as it offsets inflationary pressures, reduces its current account and fiscal deficits and supports growth.
Investors tend to give too much attention to short-term relative performance figures. As a solution to this, the amLeague organises a paper trading game where managers play as if they were managing a real portfolio.
The constraints of the zero lower bound means developed economies may be confronted with the prospect of a future of chronically weak demand and slow economic growth
A small bump in the road has a negligible impact when taken at slow speed. The story is different when one is speeding down the highway. The same applies in financial markets.
The ECB’s messages are clear: inflation will stay low and below its policy objective for quite some time; policy rates will stay low for years to come; if need be the ECB can do more but let’s see first how this works.
Comforting economic news and low levels of the ‘fear gauges’ in markets reflect a peaceful environment, yet investors feel unease. This is healthy and should prolong the bull market.
Charles Alberti, Investment Specialist at THEAM, and Anne Poirrier-Hamon, Head of Product Strategy at BNP Paribas Asset Management, respond to Perspectives’ questions regarding the cutting-edge target date strategy designed to provide investors with upside potential as well as formal protection by the BNP Paribas Group.
The European central bank’s ability and willingness to take, if economic conditions require, non-conventional monetary policy measures has provoked reactions in senior ECB officials.