As part of the U.S. economy's welcome recovery from the pandemic, inflation expectations and nominal interest rates have been on the rise-more recently, so have real rates, and the market response has become somewhat complicated.
Emerging market equities have gone from the best performing region to the worst performing region in a few short months. Are they getting ready for a comeback or is it time to take a step back? Our Chief Investment Strategist EMEA & APAC, explores the issue.
Inflation looks set to overshoot the Fed’s target as we have expected. Yet we see uncertainties around the near-term persistence of the overshoot as the restart leads to unusual supply and demand dynamics.
Well, last week was a real “meh” moment for markets as US stocks shrugged off the news of strong earnings. Certain high-profile companies reported strong results, and 86% of S&P 500 Index companies have beaten market expectations so far, with 60% of the index’s companies reporting.