From Convergence to Divergence: Emerging Markets in Expectation of Higher Rates
Over the course of the last few months, we observe that not only developed markets have been enjoying good returns, but also emerging markets rise along with them. As the following graph shows the Global PMI Index (signifying manufacturing activity) is close to its...Reflation Trades and Upbeat Sentiment: Rates, Oil, and the Containment of Risks
It seems that analysts around the world are singing from the same chorus book, called Reflation. If we could define the latter we would say that it refers to a cycle when incomes and spending are rising which in turn boost growth. It’s interesting to note that such...Has the Unleashing of Animal Spirits Time Arrived? A Little Caution due to the Doom Loop
A year ago equity and commodity markets were in a panic mode. Chinese tremors, fears of deflation, oil prices below $30 a barrel, declining commodity prices (such as copper), and corporate earnings recession had infused fear in the markets. Now, a year later we found...U.S. Economic Developments Meet European Politics: Upswing Targets Convergence
The equities market continues its upswing trend and as its tide rises, other equity markets around the world follow it too, given that expectations and economic fundamentals in other places around the globe (Asia, Europe) are rising too. A couple of weeks ago we...Sign Up for Our Publications
