QuotedData’s economic round up – May 2018 is a collation of recent insights on markets and economies taken from the comments made by chairmen and investment managers of investment companies – have a read and make your own minds up. Please remember that nothing in this note is designed to encourage you to buy or sell any of the companies mentioned. Kindly sponsored by Polar Capital
Global stock markets rose in April. Concerns about protectionism appeared to soften and the oil price weakened and tensions in the Middle East abated. US and Eurozone equities posted a narrow gain, supported by ongoing strength in economic data, a buoyant oil sector and reduced trade worries. Sterling weakness and expectations of a rate hike in the UK fell after some disappointing economic data. Japanese equities gained as yen weaken against the US dollar on reduced geopolitical risk. Emerging markets equities return were negative due to US dollar strength.
Cautious optimism for equity markets, with rising inflation less of a concern. Geopolitical risks remain.
There has been a marked change in the views expressed by the chairs and managers of global investment managers. Alan Hodson, chairman of JPMorgan Elect suggested that robust global growth should support earnings and that they expect dividends to continue to increase. However, interest rates are expected to rise in the US and UK, and markets are already highly rated. The chairman of Henderson International Income, Simon Jeffreys wrote that economic growth has improved while unemployment continues to fall in most major economies. Although expected interest rate increases (although modest) in countries such as the US and UK have happened, elsewhere monetary policy has focused on stimulating economic activity. Against this, the political landscape remains as uneven as ever. Chairman of Martin Currie Global Portfolio Trust, Neil Gaskell, notes that the markets have been strong for some time, although there has already been one short-term market correction. He proposes that it is possible that others could occur, especially if inflation exceeds current expectations of a gradual increase during the year.
QuotedData’s economic round up – May 2018