News & Insights

August Monthly Market Commentary: Post-Covid recovery largely on track despite regulatory and political headwinds

The proportion of vaccinated people continues to rise around the world while the number of deaths is decreasing rapidly despite the Delta variant. The global economy is normalizing with key unemployment figures improving, albeit not yet at pre-pandemic levels. Expected growth for 2021 remains strong, led by China. We also note corporate earnings have beaten expectations in major economies. As anticipated, inflation appears to be transitory, with China’s annual inflation rate at 0.8% in August, below market consensus (1.0%), thus easing the pressure on central banks to hike their short-term rates.

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July 2021 Monthly Market Commentary: Cautious market sentiment amid China’s stricter regulatory stance

Although global macro economic data continued to be positive in July, market sentiment has been dampened by China’s regulatory tightening in the tech and education sectors as well as a potential new wave of Covid infections around the world.

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June 2021 Monthly Market Commentary: Strong global economic data despite Covid variant threat

The overall global macro environment remains positive for risky assets in general and equity markets in particular. We believe financial markets are benefiting from three main factors: first, the progressive reopening of economies, country by country, which will underpin economic growth and corporate earnings; second, the fact that inflation is most likely temporary; and third, central banks’ accommodative monetary policy, which will continue to support the economy in the foreseeable future.

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Weekly FX Commentary June 16, 2021: USD edges up amid increased inflation 

Several key inflation figures were announced last week. China’s May inflation rate came in lower than expected on Wednesday. By contrast, inflation readings in the US, announced on Thursday, increased at a faster rate than the market anticipated, with US headline inflation at 5.0% YoY and US core inflation at 3.8% YoY. As a result, the USD appreciated against major currencies as market expectations of Fed tapering increased.

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Weekly FX Commentary June 08 2021: Upside pressure on RMB remains strong amid global recovery 

Albeit lower than expected, China’s trade surplus further increased in May according to yesterday’s official announcement, as China continues to benefit from strong global demand.

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May 2021 Monthly Market Commentary: Biden’s massive new spending plan to fuel the reflationary trend

In May, the market’s risk-on sentiment was supported by the gradual global economic recovery – country by country – as well as better-than-expected corporate earnings. Meanwhile, central banks confirmed their near-zero short-term interest rate policy, a key factor to maintaining the high price level of stock markets in the West.

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