Weekly Market Monitor

A weekly summary of global market activity, including performance of key equity and fixed income indices, currency and commodity information, bond yields and spreads and key economic indicators.

 

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January 2025 Cross Asset
01/28/2025 Cross Asset

Views on China for 2025 and beyond

The economic backdrop foreseen for the next 12 months suggests that the ongoing market correction will continue through the first half of 2023. In the second half of the year, we expect some of the headwinds to abate due to lower price pressures and a hold on interest rate rises. We believe this will support a gradual shift from a defensive stance, with its tilt towards gold, investment grade credit and government bonds, to increased risk exposure through developed market equity and high-quality credit.

IT-2025 High Yield Outlook
01/10/2025 Investment Talks

January 2025 US High Yield Market Outlook & Positioning

Although full year 2024 returns for High Yield were strong and spreads tightened during the fourth quarter, fourth quarter returns were weak with losses in both October and December due to yield curve headwinds. While defaults have moderated over the last few months, Moody’s recently increased its year-end global speculative grade default by issuer forecast to 4.6% on weaker US employment. Moody’s also projects the global default rate by issuer count to decline steadily across 2025, reaching 2.7% by next November.

Jan 2025 GIV
01/03/2025 Global Investment Views, Equity, Fixed income

A semblance of a goldilocks ahead of Trump's inauguration

Markets have cheered any good news emerging in 2024 from the economy, corporate earnings and the political environment, although occasionally they were caught by surprise. Looking ahead, they will be driven by earnings momentum, a scenario of slowing US growth, and rebalancing labor markets. On the other hand, the Fed's more hawkish stance and Trump's approach to trade, along with the international response, could create volatility. Outside the US, European growth and policy-making, as well as China's response to its domestic problems, will drive the markets.

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