January 21, 2020
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Recent data have been relatively positive and signal to some stabilization. Lower trade tensions, less uncertainty of a hard Brexit in the short-term, a lax monetary policy and somewhat expansionary fiscal policy should support a slightly higher growth. Global GDP will grow steadily at 3.2% in 2020 and 3.3% in 2021.
Markets were generally steady because of a U.S holiday celebrating Martin Luther King Day. Therefore, sovereign bond yields and FX markets remained largely unchanged ahead of key economic events that will take place during the week.
The two recurring themes that have determined the course of the global economy and represented the greatest sources of uncertainty in 2019 have been protectionist tensions and the threat of a no-deal Brexit.
January 17, 2020
Market Comment | Equity markets to record highs although bond yields see limited gains
Equity markets slightly extended the increases across the board during the week, underpinned by the final agreement on the U.S.-China phase one agreement, the improvement in the U.S. activity data (retail sales and regional PMI) and mixed company earnings.
Shy market reaction after China and the U.S signed phase one of the trade agreement. Meanwhile, U.S and European stocks hit new highs, driven by positive U.S retail sales data.
Investors remained cautious ahead of the signing and the unveiled details of the U.S.-China phase one deal. Against this background, bonds remained well demanded while equity markets showed mixed results, with the U.S. equity market hitting a fresh record high.
DiGiX is a composite index that measures the degree of digitization in 99 countries around the world. It classifies information into three broad categories, supply conditions, demand conditions, and institutional environment.
Financial markets were broadly steady, although some caution lingers as investors wait for U.S.-China trade agreement progress. Concerning the macroeconomic data, U.S. inflation increased less than expected, whereas China’s trade balance rose in December.