Changing interest rate cycles are often associated with market volatility and dislocation. This time is no different with investors responding erratically to the news that the long-expected phase of rate hiking has begun.
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Economist Insights: British pound lost in translation of BoE guidance
Central bankers have prided themselves on clear communication with markets in recent years. But the road mapped out by Bank of England (BoE) policymakers isn’t taking UK interest rates where markets expected, leaving currency investors all at sea.
Global Navigator: Tiptoeing into the Christmas holidays
Flows to EPFR-tracked fund groups during the first week of December tilted towards the positive – at least for the US. Investors steered money into US Equity Funds for the 11th straight week, US Bond and Global Equity Funds rebounded from their first outflows in over seven and 17 months, respectively, and US Money Market Funds took in fresh money for the seventh time in the past eight weeks.
Global Navigator: Investors parse the meaning of transitory
Hopes that the impact of Covid’s Omicron variant will prove transitory, concern that it will not, and fears that inflation is here to stay whip-sawed global markets during the final days of November. Concerns about the latter issue were crystalized by recently reappointed US Federal Reserve Chair Jerome Powell’s admission that price pressures could spur the Fed to accelerate the tapering of its asset purchases.
Global Navigator: Turkey for Thanksgiving, Omicron for Christmas?
With Covid regaining center stage, much of the US on holiday and many central banks rummaging around in their inflation containment toolkit, flows to most EPFR-tracked fund groups were understandably muted during the week ending November 24.
Global Navigator: EU & Japan Shivers | Supply Chains Rattle
The Japanese economy’s 3% contraction during the third quarter and the latest spike in natural gas prices pushed supply chain issues to the top of a lengthy list of investor concerns going into the second half of November.
Global Navigator: Earnings & inflation both roar | November
From a fund flow perspective, the week ending Nov. 10 saw groups and themes that have fared well for most of 2021 continue to attract fresh money. Meanwhile, four out of five US companies that have reported third quarter earnings exceeded consensus expectations.
Global Navigator: Investors feel the heat in early November
The twin specters of inflation and the planet running hotter occupied investors going into November as the UN climate summit, COP26, got underway and central bankers in the US and UK met. SFlows to EPFR-tracked funds during the week ending Nov. 3 reflected the general focus on these themes.
Global Navigator: Chasing earnings and keeping powder dry
With four out of five US companies reporting Q3 2021 earnings that beat expectations, US equity markets climbed to fresh record highs during in late October.
Global Navigator: Earnings growth wrestles inflation
Rising prices and higher-than-expected earnings shaped investor sentiment during the third week of October. Most of the companies reporting their 3Q21 numbers surpassed expectations. nvestors responded by pouring nearly $25 billion into EPFR-tracked Equity Funds.