Global Investment Views - June 2023
Over the last month, markets lacked a clear direction owing to US banking sector stress, uncertainty regarding the US debt ceiling, and signs of economic deceleration amid tightening of credit conditions.
Monday 02 November 2020
Global Investment View
Developments on the virus and vaccine front and the US election are hot topics. Markets are pricing in a glass-half-full scenario, despite the still-alarming infection numbers on the virus front (second wave in Europe and record new cases globally). The interconnection of the three cycles — virus, real economy and financial — continues, but the virus transmission mechanism is changing. The ability of the virus cycle, which is the most critical of the three cycles, to affect the other two is now lower vs the beginning of the year...
Over the last month, markets lacked a clear direction owing to US banking sector stress, uncertainty regarding the US debt ceiling, and signs of economic deceleration amid tightening of credit conditions.
The broader equity markets have digested the March turmoil, but the disruption continues to be evident in the US regional banking sector, which is not showing signs of recovery.
March brought a wake-up call to markets after a complacent start to the year. The trigger was the failure of Silicon Valley Bank and other US regional banks, followed by Credit Suisse in Europe.