All articles on the topic “Markets”
The comeback of the Emerging Markets
Interview with Christian Gaier, Senior Fund Manager for emerging markets government bonds Emerging equity and bond funds have borne the brunt of the consequences of the global uncertainties in the past years. Wars and conflicts in the region, slumping commodity prices (especially oil), and fears of an interest rate reversal in the USA have caused […]
Turkey’s coup attempt
What happened? Last Friday evening, a fraction of the Army mostly medium rank officers, had undertaken a coup attempt and seized airports, bridges, TV stations and military headquarters, before attacking the Turkish parliament, leaving the building charred and damaged, and have reasoned to seize power to protect the democracy from the Government.
Brexit: How resilient is the financial system?
The vote in favour of leaving the EU by the UK means one thing above all: uncertainty. Because the effects on the sentiment and the behaviour of companies, the public, the financial market participants, and the political parties are difficult to predict. Paradoxically, the prices of risky assets such as equities, corporate bonds, and emerging […]
Independence Day
On 23 June the people of the UK voted in favour of an exit from the European Union. Basically the UK thus strengthened its supposed (?) state sovereignty at the expense of the economic advantages of an EU membership. For the rest of the EU, its economic and political clout weakens as a result.
Brexit becomes reality – markets under pressure
Yesterday’s referendum in the UK surprised with a narrow majority in favour of Brexit. According to the latest results, 51.8% voted for the Brexit, i.e. the exit from the EU. Polls and betting odds had been suggesting a majority in favour of remaining (“Bremain”) in the EU. As expected, Brexit is triggering a massive negative […]
Central and Eastern Europe poised for comeback
Author: Dieter Kerschbaum, Communications Specialist Austria Interest rates are at record lows in the euro area, as a result of which investors can feel a great deal of pressure to achieve acceptable yields. This situation shifts their focus back to the countries of Central and Eastern Europe (CEE). Central and Eastern Europe currently comes with […]
Brexit update: Will they stay or will they go?
Less than a week is left before the British electorate will decide whether the United Kingdom should remain a member of the European Union (the Bremain scenario) or leave the union, an outcome known as Brexit. Two months ago, when we started covering this event in a series of blogs (see here, here, here and […]
Brexit or secular stagnation?
Risk-averse markets The classic indicators on the capital market suggest rising risk with respect to the economy and risky assets. Spreads have widened, and the yield differential between long-term and short-term government bonds has fallen; volatility has increased. Also, the inflation rate priced in has decreased, the Japanese yen and the Swiss franc have appreciated, […]
A brighter financial environment
The financial environment has brightened up. Equity and commodity prices have increased. At the same time, spreads and (implied) volatilities have declined. The positive development across many parts of the world has been supportive to the optimism of investors with regard to an improvement of the economic environment. In conjunction with the surplus liquidity, they […]
Default risk preferred
Equities have recovered from their beginning-of-year slump, and bonds, especially corporate and emerging markets, have recorded impressive gains. The loosening of the monetary environment in China and the continuation of the loose monetary policy in the USA have reduced the risk aversion of investors. In terms of asset allocation, we generally prefer default risk. Equities […]