Will it be smooth sailing for markets until the end of the year?

Schroders Keith Wade & Aymeric Forest look at whether equities can sustain their stellar run in view of the coming reduction in central bank liquidity, geopolitical tensions, currency moves and stretched valuations? Equities underpinned by solid synchronised global growth The global economy is on a firm and synchronised upward trajectory, which is increasingly industrial-led and underpinned … Continue reading “Will it be smooth sailing for markets until the end of the year?”

Japan’s election uncertainty

Call a snap election.  What could possibly go wrong?  Well, as embattled UK Prime Minister Theresa May could tell us (in between coughing fits) — plenty.  And yet Shinzo Abe, Japan’s premier, is set to go down the same path. Will he regret his decision to summon the country to the polls in October? At … Continue reading “Japan’s election uncertainty”

The rise of China’s technology giants

Baidu, Alibaba and Tencent have rewarded investors’ faith in them. But how have they come to dominate the online economy in China?  When little-known Chinese online gaming and messaging company Tencent decided to list in Hong Kong back in June 2004, its shares were offered at HK$ 3.70 apiece. Fast-forward 13 years to the present … Continue reading “The rise of China’s technology giants”

Supercharged: the car industry in a post-oil world

Governments around the world, barring a handful of exceptions, are seeking to limit the effects of climate change caused by burning fossil fuels. Earlier this year, some 200 countries signed the Paris Agreement, which commits them to help curtail global temperature rises. Part of the solution lies in promoting fuels that produce less of the … Continue reading “Supercharged: the car industry in a post-oil world”

With the German election over, it’s time to focus on Europe’s growth opportunities

As expected, Angela Merkel has emerged as the victor in the German elections with her centre-right CDU/CSU bloc winning 33% of Sunday’s vote. The centre-left SPD took 20.5% and has said it will go into opposition. The dominant parties in Germany remain pro-EU although the far-right AfD won a higher-than-expected 12.6% of the vote. Negotiations … Continue reading “With the German election over, it’s time to focus on Europe’s growth opportunities”

Is China’s tech boom worth investing in?

China’s statistics are often larger-than-life but the numbers relating to mobile phone ownership and money spent online are truly staggering. As of the end of last year, more than half the population – some 731 million people – were online. That’s almost all the people in Europe. Some 95% access the internet via mobile devices. … Continue reading “Is China’s tech boom worth investing in?”

Why some shares disappoint

The world economy is growing at a sustainable moderate pace, with all the main economies contributing. More people are getting jobs and better paid jobs worldwide, thanks to the faster development rates of some of the leading emerging economies and to substantial migration to richer countries generating more employment. This is a favourable background for … Continue reading “Why some shares disappoint”

The Euro shares rally and French reform

The Eurostox index reached depressed December levels last year when many market participants feared that an anti-euro government might be elected in the Netherlands or France. It rallied to a high in May of this year, putting on around 20%. Markets anticipated the French election result and relaxed about the immediate prospects for the Euro. … Continue reading “The Euro shares rally and French reform”

Progress of Europe’s banks may mark a turning point

We crave turning points.  As we mark five years since European Central Bank (ECB) President Mario Draghi’s “whatever it takes” speech — which crushed government and corporate bond spreads and contributed towards an 80% rally in eurozone stocks — are we on the cusp of another inflection? The eurozone has just enjoyed its best quarter … Continue reading “Progress of Europe’s banks may mark a turning point”

Summertime and the livin’ is easy

Stocks are jumping and the market is high (to paraphrase Ella Fitzgerald’s seasonal classic). After a slight blip in June, July saw investors shake off concerns over the potential for Central Bank tightening and global stockmarkets reverted to a sunny climate of positive returns and low volatility. The UK and most developed overseas markets posted … Continue reading “Summertime and the livin’ is easy”

A-Shares: All Quiet on the Eastern Front

Two years ago this month (June) China’s A-shares (shares that trade on the Shanghai and Shenzhen stock exchanges) reached their highest level since the global financial crisis, after rocketing almost 80 per cent in six months. The market then slumped more than 43 per cent over the subsequent 11 weeks. Shares of companies that are … Continue reading “A-Shares: All Quiet on the Eastern Front”

Does low volatility mean a shock lies in store for investors?

Despite the many economic and geopolitical risks in the world today, volatility in asset markets has been remarkably subdued. The Vix index, the market’s so-called fear gauge, has recently fallen to a reading of around 10. This is exceptionally low compared to long-term norms. and only just above the all-time low of 9 that it … Continue reading “Does low volatility mean a shock lies in store for investors?”

UK election: what a hung parliament means for markets

Following the surprise UK general election result, Schroders’ Alix Stewart,  David Docherty & Azad Zangana, consider the implications for the economy and markets.   The UK general election has resulted in a hung parliament, with no party commanding an overall majority. The Conservatives have emerged as the largest party and will likely seek to form … Continue reading “UK election: what a hung parliament means for markets”

After the FTSE 100’s 37% return, should I still invest?

The FTSE 100 has soared in the past year and reached a new all-time high. Is the UK stock market still good value? The rise in the FTSE 100 since a low last February has been remarkable. The index was up 33% between 11 February 2016 and mid-January 2017. Including dividends, the index returned 37%. … Continue reading “After the FTSE 100’s 37% return, should I still invest?”