Looking back at the markets through September

A selection of articles looking back through the markets last month. Global Market Review Rising infection levels knock sentiment Share prices generally fell during September amid concerns over rising infection levels and their potential impact on economic activity. Investors’ worries were compounded by doubts over Brexit negotiations, continuing friction between the US and China over … Continue reading “Looking back at the markets through September”

Covid-19 and the Japanese model

The Japanese economy was in recession when the virus struck. GDP fell 1.8% in the fourth quarter of 2019 and experienced a further small fall in quarter 1 2020. Japan’s decline of 7.9% in the second quarter was a large fall by historic standards but was at the lower end of declines worldwide as economies … Continue reading “Covid-19 and the Japanese model”

The performance of world markets in the pandemic

Equity-market performance around the world has diverged in response to government stimulus measures and those exposed to the digital revolution. At the end of July, the S&P 500 index of larger US company shares pushed ahead of its starting level this year. Nasdaq powered on, forming more new highs. It has now delivered a 22% … Continue reading “The performance of world markets in the pandemic”

Looking back at the markets through March

A selection of articles looking back through the markets last month. Global Market Review March Meltdown The extended bull run came to an abrupt end in March as the coronavirus continued to spread into Europe and America, and a collapse in confidence pushed share indices into bear-market territory. Investors suffered exceptionally high levels of volatility … Continue reading “Looking back at the markets through March”

Looking back at the markets through February

A selection of articles looking back through the markets last month. Global Market Review Investors take fright as coronavirus takes hold As the spread of coronavirus gathered pace across the world during February, investors became increasingly concerned that the economic impact could trigger a global recession.  “Central banks are coming under pressure to respond to … Continue reading “Looking back at the markets through February”

Looking back at the markets through January

A selection of articles looking back through the markets last month. Global Market Review Coronavirus hits investor sentiment Investor sentiment was initially buoyed in January as the US and China signed their interim trade deal, driving US share indices to new all-time highs. However, major global equity markets ultimately ended the month in negative territory … Continue reading “Looking back at the markets through January”

Looking back at Global markets in November

Global Market Review Brexit takes a back seat Although politics continued to dominate newsflow and sentiment in the UK during November, Brexit was superseded by the General Election as the focal point. As the different parties set out their manifestos, Brexit took a back seat as the focus of the different party leaders shifted to … Continue reading “Looking back at Global markets in November”

Looking back at the markets through October

A selection of articles looking back through the markets last month. Global Market Review Election fever October saw the UK plunge into election fever as progress on Brexit once again ground to a halt. Although Prime Minister Boris Johnson managed to reach a new Brexit Withdrawal Agreement with the EU , he failed to win … Continue reading “Looking back at the markets through October”

A look at equity markets in Japan and China

On a day when Wall Street has reached new all-time highs, there has been some favourable effects on equity markets around the world. The bulls are buying, hoping that there will be some modest trade deal soon between the US and China. Meanwhile, all can enjoy the benefits of low-interest rates and more money available … Continue reading “A look at equity markets in Japan and China”

The other trade war is another tech nightmare

A political dispute between Japan and South Korea is spilling over into trade. Unless it is resolved, the consequences for smartphone makers could be serious. It’s a difficult time for smartphone makers. Shipments of devices are likely to fall for a third consecutive year in 2019, so the introduction of new 5G phones is the … Continue reading “The other trade war is another tech nightmare”

Looking back at the markets through May

Although the US and China had been widely expected to agree a trade deal, US President Donald Trump instead confounded hopes by announcing that tariffs on over US$200 billion-worth of imports from China would increase from 10% to 25%.  In response, China raised tariffs on US$60 billion-worth of US goods. Share prices fell heavily in … Continue reading “Looking back at the markets through May”

Japan gets into party mood – how will markets respond?

Japan had been fighting deflation for years since the great crash of its banks and property market thirty years ago. An ageing population saves a lot. Population numbers are falling so GDP will not grow as quickly as in places like the US and UK where migration adds to the numbers. Companies are worried about … Continue reading “Japan gets into party mood – how will markets respond?”

How has Japan’s economy fared?

The Japanese economy shrank in the third quarter. Poor export performance combined with a small reduction in demand at home to produce a 0.3% contraction. Japan is quite exposed to the dangers of the trade war, with good exporting companies needing a favourable background for their products. It also finds it difficult to expand domestic … Continue reading “How has Japan’s economy fared?”

Growth to slow as trade wars escalate

As a deeper and more prolonged trade war is anticipated between the US and China, we have downgraded our global growth expectations and forecast slower growth in both 2018 and 2019. Much of the slowdown can be attributed to the effect of trade wars. Europe and Japan disappoint Two of the world’s most export-oriented economies, … Continue reading “Growth to slow as trade wars escalate”

What has driven stockmarket returns and what will drive them in future?

While the equity markets of various countries and regions have performed very similarly over the past three years, the components of returns have been very different. When we look back over the past three years, investors have earned remarkably similar returns in local currency terms in very different parts of the world. UK, eurozone, Japanese … Continue reading “What has driven stockmarket returns and what will drive them in future?”