As the eurozone has been flirting with deflation this year, appetite for inflation-linked bonds has been understandably lacklustre. However, as the oil price started a surprise ascent in April, interest in the asset class rose accordingly. With the oil price now below $50 again, investors are once again abandoning the asset class.
The Japanese equity market remains, for many investors their highest conviction overweight. But, over the past few days eyebrows have been raised about the level of growth in the region on the back of stalling exports, compounded by worries about the impact of the recent yuan devaluation.
China’s Central Bank has devalued its currency for the second consecutive day, following Tuesday’s biggest depreciation in two decades.
The issue of the value of China’s currency versus other major currencies, particularly the US dollar, has been rumbling on for many years now.
While Danish investors remain bullish about the prospects for European equities, they are also in risk-on mode when it comes to bonds.
The one-off depreciation of the yuan needs to be just that in order to avoid sparking a currency war and derailing the global recovery, according to industry experts.
Exchange-traded Funds make trading more expensive, because they reduce liquidity of the underlying stocks in the ETF. This doesn’t only compromise investors, who are confronted with higher costs, but also makes markets less efficient. These are the main conclusions of a study conducted by three scholars from the United States and Israel*, based on data…
Institutional investors based in Europe have withdrawn $6.8bn from offshore hedge funds in the first seven months of the year, according to data compiled by Mandatewire. By contrast, North American investors have continued to pour money into the asset class.
ETFs and ETPs listed in Europe are gathering net new assets 13% faster than in previous years, according to research consultancy ETFGI.
The Danes are once again Europe’s most optimistic investors, with a record 83% of them having a positive macroeconomic outlook. They are in a convincing risk-on mode, with continuously high demand for European equities and relatively big appetite for risky bonds.
Investors in Germany continue to increase their investments in multi-asset funds. According to the branch organisation for the German fund industry BVI, net inflows into multi-asset funds more than doubled in the first half of this year to a record €23.8bn. Total assets invested in mixed funds have now surpassed those in bond funds for…
Financial consultancy Wellershoff & Partners recently analysed the return prospects for equity markets in Asia, Europe and the US, The outcome? Europe will outperform the US by about five times.
