The fall in oil prices since Iran and Israel’s back-and-forth attacks suggests that some of the risk premium in prices has now unwound. Prices continue to be supported by OPEC+ production cuts but we suspect that members will gradually unwind these cuts …
7th May 2024
The strong rally in industrial metals prices seems stretched and, as a result, we expect prices to ease lower by end-year. After all, while industrial metals demand will recover this year, boosted by a combination of interest rate cuts, a recovery in …
The US dollar has made further gains against most major currencies over the past month or so. Interest rate expectations have continued to pick up in the US and in most places outside Asia, weighing particularly on that region's currencies (prompting …
30th April 2024
We expect equities to outperform most other assets as a bubble fuelled by AI-enthusiasm continues to inflate, supported by a backdrop of resilient economic growth and monetary easing cycles. In particular, we expect US equities to continue to lead the …
Emerging Asia Chart Pack (April 2024) …
China Chart Pack (Apr. 24) …
We think the Fed and most other developed markets (DM) central banks will be able to ease monetary policy this year and next more than investors currently anticipate. DM bond yields will end 2024 below their current levels, putting downward pressure on …
29th April 2024
Africa Chart Pack (Apr. 2024) …
25th April 2024
House price growth in London remains negative according to the ONS, but timelier measures of house prices and sentiment suggest that activity has picked up and prices are regaining momentum. The recent slight increase in mortgage rates may temper the …
The paring back of expectations for interest rate cuts in advanced economies this month has generally come alongside an upward revision to interest rate expectations across Emerging Europe. However, we think analysts may still be overestimating how far …
India has been the star performer among major EMs over the past several quarters and the latest data suggest that the strength of economic activity has continued through to the eve of the election. Headline inflation is grinding back to the RBI’s 4% …
24th April 2024
All-property yields have been broadly stable since the start of the year. Higher-than-expected interest rates mean yields may see a further small rise over the next few months, but we still think they will flatten out by end-24. However, with no yield …
Activity in the region picked up in Q1 and we expect this to continue in the coming quarters. But growth over the year as a whole will fall short of consensus expectations. The disinflation process is entering a slower phase and the delay in rate cuts …
The escalation of the conflict between Israel and Iran has largely been shrugged off by the oil market and risk premia in the Gulf remain low. Even so, growth will remain weak in the Gulf this year. There will be bigger macro consequences from …
The latest activity data suggest that GDP contracted at the start of the year, but a rebound is very likely over the coming quarters. Goods inflation should keep slowing rapidly, but strong wage growth will keep inflation above the BoJ’s target for most …
Even if mortgage rates fall to 6.5% this year as we expect, homeowners will still be discouraged from listing their home, ensuring supply remains tight. At the same time, mortgaged buyer demand should pick-up as affordability improves. That will drive …
18th April 2024
Recent increases in natural gas prices in Europe have predictably been mirrored in the EU carbon price, which has risen from a 31-month low of €52 per tonne in February to €71 at the time of writing. The rise in European natural gas prices has been driven …
The recent upturn in activity and employment growth and the resilience of core inflation suggest that the Fed won't start cutting interest rates until later this year. But although it is taking a little longer than expected, we still believe that core …
Aggregate EM GDP growth will enter a slower phase over the coming quarters. But the headline figure masks large variation in prospects at a country level, with many EMs experiencing a reversal of last year’s fortunes. While we expect the EM monetary …
Global Economics Chart Pack (April 2024) …
12th April 2024
The minutes of their most recent meetings revealed that the RBA and the RBNZ have both abandoned their tightening bias. However, the two central banks are likely to walk different paths when it comes to policy easing. We expect the RBNZ to cut rates in …
11th April 2024
The bigger-than-expected fall in CPI inflation in February was the second in as many months, and together with the Bank of England’s clearer hints that it is getting close to cutting interest rates, it gives us a bit more confidence in our forecast that …
9th April 2024
The latest data are consistent with our view that the euro-zone will remain close to recession in the near term. With the labour market softening and inflation continuing to fall, the ECB is very likely to start cutting rates in June. Elsewhere, the SNB …
8th April 2024
China’s economy continued to recover in the first months of the new year. And we think fiscal support will keep supporting growth in the near-term. That said, the property sector remains a drag on the economy, and we expect a sharp downward adjustment in …
3rd April 2024
The recent easing in price pressures and the Bank of England's new-found dovish slant has convinced investors that interest rates will be cut a bit further over the next two years. But we still think investors are underestimating how far rates will fall. …
The economy made a strong start to the year, but that was largely due to temporary factors that will soon fade. With spare capacity emerging, particularly in the labour market, downward progress on inflation is becoming clearer. Changes to immigration …
2nd April 2024
Africa Chart Pack (Mar. 2024) …
28th March 2024
Our Emerging Europe Chart Pack has been updated with the latest data and our analysis of recent developments. Inflation continued to fall across Central and Eastern Europe (CEE) last month and in most countries it is now back within central bank …
27th March 2024
The past month has seen Egypt’s economic crisis turn around with the devaluation of the pound, aggressive interest rate hike, and unlocking of a new IMF deal. There have been false dawns before, but this shift back toward economic orthodoxy feels more …
A pause in the fall in mortgage rates and a rise in the number of homes coming onto the market mean house price growth will stall in the near term. But our forecast that Bank Rate will be cut further than expected suggests that further reductions in …
26th March 2024
Emerging Asia Chart Pack (March 2024) …
India retained its title as the world’s fastest-growing major economy last year and the latest data suggest that the economy continues to perform exceptionally well. Headline inflation has eased in recent months and we think it will reach the 4% midpoint …
Faltering consumer spending reinforces our view that GDP growth will slow this year, although that slowdown is likely to be modest. After a disappointing couple of months for inflation, easing demand growth should help to drive a more marked decline later …
25th March 2024
GDP growth will come in below consensus in most EMs this year, with the notable exceptions of India and Taiwan. Although stubborn wage growth means the pace of disinflation is likely to slow from here, we think the EM monetary easing cycle will broaden …
22nd March 2024
All-property total returns have turned the corner, with a month-on-month rise in January and February. Rental growth is set to continue to ease, but yields are close to a peak and that will remove the downward pressure on capital values over the next …
19th March 2024
Our latest Latin America Chart Pack is embedded below. Activity in the region slowed to a crawl at the end of last year and, while a recovery will take hold in the coming quarters, growth will disappoint consensus expectations. The disinflation process …
13th March 2024
Global Economics Chart Pack (March 2024) …
The timeliest data support our long-held view that the euro-zone economy will remain close to recession in the first half of the year. Beyond that, we think growth will be much lower than the consensus or the ECB are forecasting. However, the labour …
12th March 2024
We expect oil prices to edge lower in the second half of 2024 as OPEC+ starts to unwind its production cuts. However, the Israel-Hamas war, and associated risks to supply, will act as a floor under prices. Natural gas and coal prices will also fall owing …
Oil prices have so far shrugged off disruptions to shipping in the Red Sea and the risk of wider conflict in the Middle East. Prices were supported by the OPEC+ decision to roll over production cuts until Q3. We expect that the group will gradually unwind …
11th March 2024
Industrial metals demand will recover this year, boosted by rate cuts and a bit of a recovery in economic growth in advanced economies. That said, recovering supply will cap price rises for some metals, such as aluminium and nickel. Policies outlined at …
8th March 2024
Canada Chart Pack (Feb. 2024) …
29th February 2024
We expect ‘safe’ assets to rally a bit more over the next couple of years, largely informed by our belief that investors are underestimating how quickly and/or how far many central banks will cut interest rates over 2024-2025. Our expectation that safe …
Aggregate EM growth softened towards the end of last year and we think it will remain weak in 2024. But there will be divergence at the country level with growth slowing in those economies that outperformed in 2023 and growth picking up in last year’s …
Economies in Central and Eastern Europe ended 2023 on a weak note, but the outlook for this year looks brighter. Lower inflation and interest rates should support a recovery in domestic demand over the coming quarters. In contrast, Turkey’s economy has …
Despite renewed inflation concerns pushing interest rate expectations and gilt yields higher, our forecast that CPI inflation will fall below 1.0% later this year makes us think that the markets are wrong to price in interest rates falling from 5.25% now …
China’s economy has regained some strength recently. We expect this to continue over the coming months, on the back of support from fiscal policy and a further pick-up in household spending. But with property construction likely to continue to decline and …
The US dollar has made further gains against most major currencies over the past month or so. Interest rate expectations have edged higher in the US and in most places outside Asia, weighing particularly on that region's currencies. While we no longer …
28th February 2024
We think the Fed and most other DM central banks will deliver a bit more policy rate cuts this year and next than investors currently anticipate. As a result, we forecast that Treasury yields will end 2024 slightly below their current levels, putting …
Africa Chart Pack (Feb. 2024) …
