Markets unmoved by Macron landslide
Emmanuel Macron thrashed his far-right opponent Marine Le Pen in yesterday’s second round of the French presidential election. But markets withstood the temptation to take a victory shot.
Analysis
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ANALYSIS: Is now the time to go overweight oil majors?
The first quarter has proved lucrative for the gargantuan oil companies of Exxon, Chevron and BP. But are their fortunes purely macro-driven or are there other reasons for investors to reconsider the sector?
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ANALYSIS: Time to put your feet up as ‘fear index’ drops to lows?
As the world is nearing a confrontation between two nuclear powers, the VIX index of volatility fell to a 10-year low in an convincing display of indifference.
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The oil price – up, down or ‘range-bound’?
The current acceleration of the world economy should normally boost demand for oil. However, the price of the ‘black gold’ has bounced up and down of late, dropping by more than 10% in the second half of April.
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Will robots replace fund selectors?
Using algorithms may help fund selectors choose products more efficiently, but human judgment is still key in choosing the right fund products.
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Euro weakens slightly as ECB remains in easing mode
As expected, the European Central Bank (ECB) kept rates on hold on Thursday. Hawks’ hopes the ECB may hint on monetary policy tightening were disappointed. But there was a change of tone in ECB-president Mario Draghi’s words.
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ANALYSIS: Harness ‘animal spirits’ for investment success
Not being a student of Keynesian theory, I’ve been somewhat confused by the oft mentioned revival in ‘animal spirits’. Rather than bulls and bears, investors should beware the headless chickens.
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ANALYSIS: Go for gold amid political chaos and reinflation
Rising inflation, the US missile attack on Syria and new tensions with Iran, North Korea and Russia have all helped to bring gold into play in recent weeks.
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ANALYSIS: Is M&A a raw deal for asset managers?
The ‘squeeze’ on asset managers’ balance sheets is well known, while recent deals in the sector have failed to cheer shareholders, but there are nonetheless pointers to the industry’s future winners.
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Don’t forget about base currency risk
Standard practice among investors is to hedge away foreign currency risk in fixed-income portfolios. But that could increase another sort of currency risk that is often missed.
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ANALYSIS: Markets shrug off May’s Article 50 notification – are they right?
Theresa May is picking an early fight with EU leaders in her letter in which she formally announced the start of the UK’s Brexit process. Bond, equity and currency markets hardly responded. But perhaps they should have.
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Give Brits the option to remain European citizens post-Brexit, says Verhofstadt
Article 50 has now been triggered, and the UK will leave the European Union in two years time. But Brexit shouldn’t result in UK citizens losing their European citizenship against their will, said the European Parliament’s chief Brexit negotiator Guy Verhofstadt.