Capital Daily Stock market wobbles more likely than a renewed rout Although worries about second waves of coronavirus are likely to persist in the coming months, we do not expect such concerns to weigh on equity prices for long, just as they have not done recently... 17th June 2020 · 6 mins read
Capital Daily Fed’s policy actions bode well for risky assets Even if the Fed’s latest decision to tweak its buying of corporate bonds in the secondary market is hard to justify, given the improvement in market conditions over the past few months, it reinforces... 16th June 2020 · 7 mins read
Capital Daily Equities likely to bounce back if virus outbreaks remain localised Concerns about a second wave of COVID-19 have prompted a renewed sell-off in global equities. Our view is that this sell-off won’t last, and that most risky assets will make more headway this year, as... 15th June 2020 · 7 mins read
Capital Daily Second waves of COVID-19 the biggest risk to equities Neither the Fed’s latest projections for the US economy nor the waning popularity of President Trump and his party are convincing explanations for yesterday’s slump in stock markets after their... 12th June 2020 · 6 mins read
Capital Daily Treasury yields and S&P 500 likely to diverge again before long We doubt that today’s joint sharp falls in the S&P 500 and the 10-year US Treasury yield are a sign of things to come. 11th June 2020 · 6 mins read
Capital Daily Rebound in US payroll conducive of further gains in US equities Today’s far better-than-expected US Employment Report helped push the S&P 500 up by another 2%. Overall, we remain of the view that the index will make further gains between now and end-2021 and will... 5th June 2020 · 7 mins read
Capital Daily ECB reinforces case for optimism on euro-zone assets The ECB’s decision to increase its asset purchases by €600bn, and the resulting positive reaction in markets, supports our view that policymakers’ efforts to contain strains in the currency union will... 4th June 2020 · 7 mins read
Capital Daily Rally in commodity currencies has further to run in our view The recovery in the price of Brent crude oil, which briefly rose above $40 per barrel today, has given a boost to the currencies of the countries whose fortunes depend heavily on oil and other... 3rd June 2020 · 7 mins read
Capital Daily Brexit uncertainty likely to continue to cloud sterling outlook While sterling has rallied sharply over the past couple of days, its performance had previously lagged that of other risky currencies recently. That appears to partly reflect renewed concerns about... 2nd June 2020 · 5 mins read
Capital Daily US equities may prove less resilient in renewed US-China spat Equity markets have struggled to make much headway this week as the continued escalation of tensions between the US and China weighs on investors’ still-recovering confidence. While it is difficult to... 29th May 2020 · 8 mins read
Capital Daily Bunds may not regain their status as Europe’s safest haven We expect the gap between the yields of 10-year Swiss and German government bonds to fall further back below zero, despite turning positive recently for the first time this century. 28th May 2020 · 7 mins read
Capital Daily Outperformance of E-Z over US equities likely to continue As equity markets have been generally edging higher over the past week, one thing that has been overlooked is the improvement in the relative performance of euro-zone equities. Provided a renewed... 27th May 2020 · 6 mins read
Capital Daily Despite renewed risks in HK, China’s stimulus may help equities While the stimulus measures announced by the Chinese authorities today should boost the economic recovery there and in the rest of the world, an escalation of tensions in Hong Kong, and between China... 22nd May 2020 · 7 mins read
Capital Daily Equity rally may have further to go, despite subdued PMIs A lot has been made of the divergence between global equities, which have bounced back strongly over the past two months, and the dire incoming economic data, like the latest PMI surveys. But those... 21st May 2020 · 7 mins read
Capital Daily Recovery in sterling could have further to run If we are right in thinking that some sort of compromise can still be reached on a UK-EU trade deal, the tentative recovery in the pound over the past few days could continue. 20th May 2020 · 6 mins read
Capital Daily Common debt proposal adds further support for periphery bonds While the Franco-German proposal to issue common EU debt to combat the economic fallout from the pandemic is limited in size and some way from gaining final political agreement, it adds support to our... 19th May 2020 · 6 mins read
