Global Markets Update We doubt global saving will stop US yields from rising In the early 2000s, a ‘glut’ of global saving may have helped restrain rises in long-term US bond yields, even as investors began to discount tighter monetary policy. We don’t think that similar... 28th July 2021 · 6 mins read
FX Markets Chart Pack We expect more upside for the US dollar We continue to think that the US dollar will rise further in the second half of the year as the divergence between the US and other major economies in terms of growth and, especially, inflation... 27th July 2021 · 10 mins read
Capital Daily China’s stock market sell-off and the rest of the world Although equity indices in both Hong Kong and mainland China have fallen sharply in recent days, the impact on financial markets elsewhere in the world has, so far, been remarkably limited. This... 27th July 2021 · 6 mins read
FX Markets Update Forecast revisions & taking stock of our key calls We have revised down our forecasts for many of the G10 “high-beta” currencies and several currencies in EM Asia and LatAm. This update sets out the rationale behind those revisions and updates our key... 23rd July 2021 · 6 mins read
Capital Daily The ECB’s new guidance and its implications for E-Z bonds We don’t think the changes to the ECB’s guidance announced today or the Bank’s recent strategy review materially alter the near-term outlook for government bonds in the euro-zone. However, they make... 22nd July 2021 · 6 mins read
Global Markets Update We expect Bund yields to rise, but only gradually Though we think that the recent decline in the 10-year Bund yield is an overreaction, we expect it to rise only a little over the next couple of years, and by less than yields in many other developed... 22nd July 2021 · 4 mins read
UK Markets Chart Pack Markets to regain their poise as recoveries continue While the resurgence in COVID-19 cases that has recently weighted on UK equities, the pound and 10-year gilt yields is clearly a downside risk, our view that it won’t deal a big blow to the global or... 22nd July 2021 · 8 mins read
Nordic & Swiss Economics Post-pandemic recovery phase drawing to a close As elsewhere in mainland Europe, activity in Switzerland and the Nordic economies rebounded in Q2 as services sectors re-opened and the strength of global trade has buoyed exports. Our GDP forecasts... 22nd July 2021 · 13 mins read
Japan Chart Pack Vaccines should limit Delta damage While infections are now rising sharply nationwide – particularly in Tokyo where the Delta variant has the strongest hold – most of the vulnerable population are now fully vaccinated so we doubt... 22nd July 2021 · 10 mins read
Asset Allocation Tempering our optimism We no longer expect equities and corporate bonds to outperform “safe” government bonds by anything like as much as we did a couple of quarters ago, and we continue to forecast that some other “risky”... 21st July 2021 · 25 mins read
Capital Daily We expect EM currencies to remain under pressure We doubt that today’s rebound in emerging market currencies marks the start of a renewed rally and expect them to continue to depreciate against the US dollar over the next few years. 21st July 2021 · 5 mins read
Middle East & North Africa Economics A two-speed recovery Strong COVID-19 vaccine rollouts in most of the Gulf and Morocco mean that remaining virus restrictions should be lifted by the end of this year, providing a boost to recoveries that, in the Gulf... 21st July 2021 · 25 mins read
Emerging Europe Economic Outlook Strong recovery, but inflation a lasting concern Rapid recoveries are underway across the region and GDP should return close to its pre-pandemic path sooner than in most other EM regions. While the spread of highly transmissible virus strains poses... 21st July 2021 · 28 mins read
Capital Daily Stock market wobble probably not a sign of things to come We doubt that the recent weakness in global equities is the start of a larger rout and think the market will recover before long. 20th July 2021 · 6 mins read
US Economics Delta variant adds to consumption headwinds Although 60% of American adults are now fully vaccinated, the uptick in coronavirus infections linked to the Delta variant has been accompanied by a slight rebound in fears over the spread of the... 20th July 2021 · 9 mins read
FX Markets Weekly Wrap Dollar continues to edge higher despite stalling US yields While the US dollar rose sharply after Tuesday’s exceptionally strong inflation print, that was partly offset by Fed Chair Powell’s relatively dovish comments in his testimony to Congress. But overall... 16th July 2021 · 9 mins read
