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MARKET COMMENTARY

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Looking to Asia for Help

Sep 7, 2021

12:04 am

• The US economy loses some momentum, but it may be just noise • The bond market shows some concern about wage inflation • ECB may discuss the tapering of bond purchases, but its implementation is unlikely for some time • The resignation of Japan’s PM could be another positive for the equity market •…

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Still a Long Way from Normal

Sep 1, 2021

12:27 am

• Normal Fed monetary policy is still a long way away as Jerome Powell presses the ongoing near-zero rates • The bond market embraces the loose money and leaves longer-dated bond yields close to 1.30% • High yield bonds continue to accrue return • Equity markets enjoy loose monetary conditions but may fret about the…

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Staying with an accommodative Fed but switching away from China

Aug 24, 2021

11:24 am

• The Fed flip flops of when it will taper but retains an air of monetary accommodation. • Jackson Hole meeting could be a source of fixed income market volatility. • Exaggerated sell-off of the equity materials sector and commodity markets. • US ‘economy re-opening stocks’ have suffered marked losses over the month. • Investors…

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Much to Ponder on, particularly in China

Aug 17, 2021

8:37 am

• US Inflation still flying high, but markets concerned with the impact of delta variant • US inflation data appears to understate inflation in residential rents • Europe providing leadership in equity markets • China announces a five-year plan of broadening regulation • We see potential material risks to the downside for Chinese equities if…

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