Quarterly Outlook
Investor Outlook: Beyond American shores – why diversification is your strongest ally
Jacob Falkencrone
Global Head of Investment Strategy
Summary: US equities slipped on Friday as debt ceiling talks stumbled, dampening investor sentiment. The S&P 500 dropped 0.1% and the Nasdaq 100 slid 0.2%. Regional banks faced pressure after suggestions from Treasury Secretary Yellen of mergers. Treasuries had a volatile session, initially declining but ultimately ending with higher yields. Chinese equities, particularly China Internet stocks, dragged down the Hang Seng Index by 1.4%. Alibaba was the worst hit. The USD traded weaker against major currencies due to Powell's remarks and stalled debt ceiling negotiations but USDCNH rose to as high as 7.075.
Q3 Macro Outlook: Less chaos, and hopefully a bit more clarity