NN IP: Schnelles Geld zurück im Fokus der Märkte

Economic Outlook

External risks push ECB toward QE2

For most of the post-Lehman period Eurozone growth has lagged many other DM economies. This has left the region with a much larger amount of slack than its G4 peers. Still over the past 1.5 years the resilience of the Eurozone economy has increased considerably and so far the economy seems to be weathering the headwinds blowing from EM space pretty well.  To assess its prospects going forward it is worth examining the forces working upon the willingness to spend in the private, public and external sectors.  Read more

Asset Allocation

Liquidity rules

Markets seem to be feeling a bit better again after ECB President Draghi injected new QE hope into investors’ minds last week. With the Fed having postponed its first hike in nine years and the biggest Asian central banks either easing already (PBoC) or getting closer to move again (BoJ), the easy money theme is back in full force in the market environment. In such an environment many investors will put on some sort of a “liquidity trade” that tries to exploit the impact that abundant liquidity will have on future asset class returns. Read more

Fixed Income

Some improvement in the environment for Spread products

Spread markets have been modestly recovering since the end of September, as the liquidity environment remains supportive while both EM and DM cyclical indicators have shown some improvement. We have therefore upgraded Spread products to neutral. Read more

Equity Strategy 

A closer look at Brazil and Mexico

Emerging market (EM) equities have been recovering in the past months, thanks to an improvement in EM growth momentum. Within EM differences are large, however, as  some countries are going through a deep economic crisis, while others get away with only a modest growth deceleration. We take a closer look at Brazil and Mexico. Read more