Europe has long been seen as the unloved problem child of the developed markets, beset with fiscal problems, threatened with disintegration and unable to escape from chronic underperformance. Now it is the new favourite. But can Europe justify its new-found popularity and higher valuations?
With all the major regions of the global economy growing in synch, investors are shrugging off political uncertainty. Equities have been buoyant, particularly in the US technology sector, where rising valuations are the focus of our lead article “Great tech-spectations”.
A weakened Theresa May will now lead a coalition into a less stable economic future.
Ever since Prime Minister Shinzo Abe came to power in 2012, bringing with him his ambitious “three arrows of reform”, investors have faced the question of when — or whether — to increase their exposure to Japan. Has the moment finally arrived or are there still clouds on the horizon in the Land of the Rising Sun?
The history of currency unions can tell us much about the outlook for the euro.
Ed Smith, Rathbones asset allocation strategist, spoke at ‘Brexit and 100 days of Trump’, an event in our Liverpool office on 3 May. Here is a summary of Eds presentation.
The world is experiencing a period of rising inflation. A rebound in oil prices has helped after dragging down UK consumer price inflation into negative territory briefly in the second half of 2015. Improving wage rates in China, which in the past had been an exporter of global disinflation, have also contributed.
Early last year, investors were preoccupied with fears about the pace of China's economic slowdown and the threat of deflation. Just 12 months later, and almost 10 years since the start of the financial crisis, a global economic upturn appears to be under way across the US, Europe, Asia and most large developing countries.