Calmer markets - but uncertainty ahead
INVESTOR BRIEF: We are currently overweight in equities, but expect to reduce risk later in the year.
Given accelerating US growth, essentially stable Chinese growth and respectable levels of growth in Europe, chief analyst Bo Bejstrup Christensen expects global equities to perform in Q2.
He presents his assessment of the economy and the financial markets in the coming quarter in the latest Investor Brief from Danske Invest.
“We also see the European corporate bond market as particularly attractive. Our positive view on Q2 should be seen against the ECB continuing to pursue an extremely easy monetary policy with the prospect of low interest rates for some time yet, while the US central bank appears set to hike interest rates at just a modest pace,” says Bo Bejstrup Christensen.
Looking ahead to Q3 and Q4, however, we have a number of concerns. In Europe, the UK will hold its so-called Brexit referendum at the end of Q2, on 23 June, and the refugee crisis will doubtlessly continue. Other worries centre on just how long China can continue to stimulate its economy, while a presidential election and further rate hikes are on the agenda in the US.
You can read more in the Investor Brief here.