NN IP: Action speaks louder than words
After a year of talking about it we finally got it. The Fed starts hiking rates for the first time in more than 9 years. It has been long anticipated, so one has to wonder what it will actually mean if everybody had so much time to prepare for it. Probably not too much actually.17.12.2015 | 16:45 Uhr
Economic Outlook: Divergence between developed and emerging markets
In developed markets, growth momentum remains robust. US data signal ongoing domestic strength. In emerging markets, however, we see growth momentum deteriorating again while capital outflows are accelerating.
Asset Allocation: Action speaks louder than words
As widely expected, the Fed announced a 25 basis point hike in the federal funds rate. The central bank made clear the rate hike was a tentative beginning to a "gradual" tightening cycle.
Fixed Income: Central Banks are driving the government bond market
After the ECB’s easing measures fell short of elevated market expectations, Bund yields corrected sharply. Ten-year Bund yields closed the day of the ECB meeting 20 basis points higher relative to the previous day. It took the 10-year Bund yield back to the November yield peak reached after a bond yield rally that followed the October FOMC meeting.
Equity Strategy: Investors hit by double punch from ECB and OPEC
Equities are digesting the double punch they received earlier this month. The ECB did not live up to the high market expectations it created itself, nor did the OPEC meeting bring any relief whatsoever to the relentless drop in the oil price.