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    Multi Asset chart of the week

    Multi Asset chart of the week

    09 May 2024 Multi-asset
    Week to 09 May 2024

    A sweet spot for global equity markets? 

    Insight’s Jonathan Crone, Portfolio Manager, multi-asset strategy team, said: “After a modest earnings recession, which began in Q4 2022, global corporate earnings are once again on an improving trend – currently rising by 7% year-on-year. Critically, this is not just a US story, with signs of improvement across major developed markets. Encouragingly, the number of European corporates reporting earnings above the levels predicted by analysts is well above historical levels, with rising margins a key driver of earnings growth. With margins often a leading indicator on the business cycle it suggests we may be in a sweet spot for global equities, with resilient growth, rising earnings and a more favourable interest rate backdrop all potential tailwinds in the coming months†.”

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    Source: Deutsche Bank, Bloomberg & Insight Investment as at 07 May 24.
    Week to 03 May 2024

    Higher velocity moves in government bond yields hurt equities in April

    Insight’s Christopher Broadley, Portfolio Manager, multi-asset strategy team, said: “This week’s chart highlights the interaction between government bond yields and equities in 2024, particularly how the latest leg higher in yields has stalled the equity rally. For most of the first quarter, yields trended higher as the combination of strong growth data and upside inflation led investors to push back the timing of expected rate cuts. Against this backdrop, equities enjoyed their third strongest start to the year since 2000. However, as upside inflation surprises have continued, the rate of change of yields has increased and in turn created a tough environment for risk assets†.”

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    Source: Bloomberg & Insight Investment as at 01 May 2024.
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