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The future path for Risk Assets for the remainder of the year based on the possible evolution of Coronavirus contagion

Once again, the fate of financial markets will be determined by what will happen in the USA, both from a monetary and fiscal point of view, but above all by the evolution of the Coronavirus contagion

Over the last few years global economic growth, notwithstanding various rounds of monetary interventions by the major central banks, has been modest and fragile

Economic and market outlook for 2020 around the globe

The role of Central Banks intervention is not as deterministic as market participants believe

In recent months, fears over Brexit, tensions related to the US-China Trade War and economic data indicating that Germany is in a technical recession, have kept financial markets under pressure

Bonds: a minimum rate reached. After August, which wasn't stable at all, we stopped to analyze the reasons why European equity is always behind and why it might start performing again

Austria 100 Years Government Bond, Nasdaq, trade war between Usa and China: what's next? Probably September and October will offer good opportunities...

  Risk Assets had a complete turn around when the Federal Reserve, during the month of January, changed its tone regarding future monetary policy. Equity markets, in particular, begun a strong rally based on the “assumption” that easier monetary policy would halt the economic slowdown and that, not too much later, synchronized global growth would resume. The bond market was st ...

During the first two months of 2019 the Equity and Bond markets are giving somewhat opposite signals; while on the one hand the MSCI World Index (a proxy for Global Equity markets) has risen +10.7% during the first two months, signalling a second half 2019 economic recovery, the US, German and Chinese 10 year yields have weakened (Picture below). Interest rate markets are indic ...