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Thanks to improved economic conditions, emerging markets – whether bonds or equities – are once again piquing investor interest after several tough years.

The apparent victories by Emmanuel Macron and Marine Le Pen in the first round of the French presidential elections should bring relief to markets and allow them to focus on the ongoing strength in the underlying European economy.

La crescita globale prosegue la sua avanzata nel T2, trainata dalla tendenza positiva in atto negli Stati Uniti, dalla vivace attività in Asia e da prospettive più rassicuranti per l’Eurozona. La crescita appare sostenuta e sincronizzata nelle principali regioni, grazie a un’attività più solida nel settore manifatturiero e alla tendenza positiva dei consumi.

Political capital and Economic growth in Asia less vulnerable if US reflation trade unwinds

February 2017 Market Review and Outlook: Asia stocks extend gains but begin questioning Trump policy details.

Brent crude oil is struggling to move beyond USD57/bl since its rally last November when it rose +USD10.10 per barrel.

Correlation between asset classes is falling towards normal levels. The recent rise in bond yields and monetary policy normalisation are causing much wider variations between asset classes in terms of their behaviour and returns. Now that these differences are reasserting themselves, active management is likely to outperform passive management.

From the fall in the oil price to Donald Trump’s victory via the shock of the UK’s decision to leave the European Union, 2016 confounded all predictions.

Since the US election, markets have pondered which of his campaign promises Trump would actually enact as President. Even before his “America First” inauguration address, the mercurial President had already fluctuated his views on foreign and domestic policies, but maintained an overall consistent message on manufacturing and trade.

What pitfalls and opportunities does this present?

In less than a week, China’s renminbi (RMB) went from being criticised during a US presidential debate to a new member of the International Monetary Fund (IMF) special drawing right (SDR).

Yields are currently negative not only on Swiss government bonds, but also on Swiss-franc investment-grade credit. However, negative yields do not have to be a disaster for Swiss-franc investors.

Emerging Asian markets closed August higher as central bank diktat drove sentiment. Markets rallied early in the month after the Bank of England cut interest rates during its first meeting following the Brexit vote.