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?”

The German elections and the markets

Earlier this year markets were stalked by talk of political risk in the Eurozone. The euro itself was on trial in the Dutch and French elections. Like many in the markets we thought the euro would win, and European shares would rise to reflect the quickening pace of economic recovery in the zone. So it … Continue reading “The German elections and the markets”

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”

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”

Why the markets ignore North Korea

Kim Jong Un, the North Korea leader, has consistently provoked the US and South Korea. A series of ballistic missile tests, nuclear weapons development, a substantial conventional weapons arsenal, chemical stockpiles and aggressive statements are a reminder that this authoritarian thug regime wishes to be noticed and is working to achieve greater military power. Meanwhile … Continue reading “Why the markets ignore North Korea”

Could the election hit your portfolio?

Theresa May is likely to increase her majority in today’s general election, although some outlier polls have suggested a hung parliament is a possibility. Here’s what could happen to markets. Charles Stanley is neutral regarding the outcome of the today’s campaign, but the polling and the commentary about the vote suggests a Conservative win with … Continue reading “Could the election hit your portfolio?”

Which stockmarket sectors have performed best over two decades?

We look at which UK stockmarket sectors could have grown your money the most over the last 20 years, and what their valuations are telling us now. When the stockmarket rises and falls the sectors within it can move very differently, especially in the short-term. Perhaps the best example was the dotcom boom and bust, … Continue reading “Which stockmarket sectors have performed best over two decades?”

Should I Stay Or Should I Go?

Investment sentiment continued to be dominated by political noise over the past month, with the French Presidential Election and Theresa May’s calling of a snap UK General Election taking over the front-page headlines from Trump and Brexit. The overall effect of the news-flow proved positive for global stockmarkets and the MSCI World index increased by … Continue reading “Should I Stay Or Should I Go?”

Trump’s first 100 days: how markets have performed

Is the “Trump bump” over? The surge in the stockmarket, the dollar and bond yields that welcomed Donald Trump’s arrival at the White House has shown signs of flagging as his first 100 days approaches. Donald Trump sailed into the White House on a wave of populist, pro-trade polices. He promised to spend big, create … Continue reading “Trump’s first 100 days: how markets have performed”

The Times They Are A Changin’…

It was a strange month for global stockmarkets, as March proved not too dissimilar to February in its outcome. With the exception of the US and Japan, which generally moved sideways, most equity markets moved higher. However, this was also echoed by government bond markets, with yields narrowing as investor ebullience over the Trump-driven reflation … Continue reading “The Times They Are A Changin’…”

Theresa May announces UK general election

This morning, UK Prime Minister Theresa May announced the government’s intention to hold a snap general election on 8 June 2017. Parliament will vote to set a date for the election tomorrow, needing a supermajority of two-thirds in favour to pass, although this is expected with the opposition leader Jeremy Corbyn having already welcomed the … Continue reading “Theresa May announces UK general election”

The Only Way Is Up…

February was a month of  universal price rises across Developed Market equities, higher risk Emerging Market benchmarks as well as safe havens such as lower risk bond markets and gold – making it difficult to see what was the key themes motivating investors. Surely something has to give? On one hand for equity markets it … Continue reading “The Only Way Is Up…”

European politics: how real are the risks?

The result in the Dutch election has been a relief to markets all round. As it was Far-right candidate Geert Wilders made only a relatively small impact, with his PVV winning fewer seats than it achieved in 2010. This begs the question, are markets making too much of the risk of populism in Europe? Of … Continue reading “European politics: how real are the risks?”

How big was the global Trump rally – and where does it leave valuations?

The prospect of a Trump presidency has fuelled a rally in stockmarkets. Schroders experts explain why and look at the latest valuations.  Stockmarkets rarely rally in the face of political and economic uncertainty. The combination of Brexit, Donald Trump’s election, the return of inflation and prospect of higher interest rates would normally undermine demand for … Continue reading “How big was the global Trump rally – and where does it leave valuations?”