Emerging Markets Overview
This commentary is an overview of Emerging Markets (EMs). We begin with a brief review of their recent trends, then explore common factors that affect most every EM (such as the strengthening of the USD), then look at factors that will affect different markets...
Weekly Market Update
Market Action Global equities rose on the week despite elevated trade tensions, with US stocks ending the week less than 3% below all-time highs reached in January while Japanese stocks posted their best weekly gain in the past six months. Although the trade picture...
Trade Disputes, Emerging Markets, and Supply Chains: Rising Tensions and Conflict Inflation
Emerging and developed markets depend to some extent on a China-centric supply chain. As trade tensions between the US and China (as well as between the US and the EU) are rising, that supply chain is subject to interruptions. The more of those interruptions occur,...
Weekly Market Update
Market Action German Chancellor Angela Merkel agreed to set up border holding camps for asylum seekers in a deal that could stave off a collapse of her government but puts her legacy of welcoming refugees and preserving open borders on the line. She now faces problems...
Global Synchronized Growth? Credit Markets and Earnings Potential
With little doubt, emerging markets have entered into bear territory with the Chinese index down more than 20% since January. This is happening at a time when central banks are unwinding their QE-induced liquidity and while corporate leverage stands at an all-time...
Weekly Market Update
Market Action China's central bank reduced the amount of cash some lenders must hold as reserves, trimming the required reserve ratio for some banks by half a percentage point. The aim was to support small and micro enterprises, and to further promote the...
Crossroads: At the Intersection of Geopolitics and Geoeconomics
Here are some critical issues to watch around the globe over the coming month: Re-election of Turkish President Recep Erdoğan Facts Turkish president Recep Erdoğan has claimed victory in the recent Turkish presidential election, reaching 52.5% of the popular...
Weekly Market Update
Market Action Trade war threats shook the markets this week and drove them down. US President Donald Trump said he would impose tariffs on $50bn of Chinese goods because Beijing is not dealing with American complaints about stealing intellectual property. In response,...
Market Swings and Policy Moods: Kafka, Verdi, and Pink Floyd
Whether President’s Trump’s threat of imposing additional tariffs on $200 billion worth of Chinese imports is a negotiation tool or a real threat remains to be seen. What/who also remains to be seen is Treasury Secretary Steven Mnuchin, who declared just a few weeks...
Weekly Market Update
Market Action The Dow Jones Industrial Average dropped 200 points on Friday morning after US President Trump announced $50 tarifs on $50 billion worth of Chinese imports. China’s Ministry of Commerce has said it will respond in “equal scale and equal strength.” Later...
