Quarterly Outlook
Investor Outlook: Beyond American shores – why diversification is your strongest ally
Jacob Falkencrone
Global Head of Investment Strategy
Last week saw Wall Street’s first negative week in ten as the Federal Reserve indicated it was in no rush to cut interest rates. US payroll and wage data came in hot, casting doubt on the view that inflation will quickly fall back to the Fed’s 2% target rate. Treasury yields rose and mega-cap tech stocks underperformed.
Crude oil began the year on a cautionary note with global growth and demand worries, as well as the recent attacks on commercial ships in the Suez Canal forcing cargo to reroute.
Key economic data this week will focus on inflation readings with US and China CPI being the focus. Fourth-quarter earnings season begins with the first major announcements coming from the large US banks on Friday.
Q3 Macro Outlook: Less chaos, and hopefully a bit more clarity