Responding to uncertainty
We're living through incredibly uncertain times. The word 'unprecedented' has been used more than ever in 2020, in relation to the catastrophic bushfires and now, with respect to Covid-19 [...]
International Communique No.237 – MARKETS STRESSED
MARKETS STRESSED Financial markets are facing unprecedented disruption and who knows how long it is going to last. The crux of the matter is how long the economy will stay [...]
International Communique No.236 – THE FED GIVES ALL IT HAS
THE FED GIVES ALL IT HAS The Covid-19 pandemic and its increasing impact on the global economy, as more and more European countries suspend all non-essential activities, have pushed risk [...]
International Communique No.235 – IS OIL THE LATEST BLACK SWAN?
IS OIL THE LATEST BLACK SWAN? Coronavirus has become the bane of investors’ existence in recent weeks. Another thing that they did not see coming (referred to by some as [...]
International Communique No.234 – VOLATILITY HITS FEVER PITCH
VOLATILITY HITS FEVER PITCH Equity markets are all in a panic. The VIX tracking the S&P 500 (known as the Wall Street ‘fear gauge’) was spiking at 40 on Thursday [...]
International Communique No.233 – SPREAD OF CORONAVIRUS OUTSIDE CHINA STOKES FEARS
SPREAD OF CORONAVIRUS OUTSIDE CHINA STOKES FEARS The mood was most definitely ‘risk off’ as markets ended the week. Shares fell while long-term bond yields and the prices of gold [...]
International Communique No.232 – PBOC FUNNELS MORE LIQUIDITY INTO THE FINANCIAL SYSTEM
PBOC FUNNELS MORE LIQUIDITY INTO THE FINANCIAL SYSTEM Output from the Chinese economy was only 40-50% of its usual capacity last week. The threat hanging over the world economy is [...]
International Communique No.231 – A WEEK SPENT RECOVERING
A WEEK SPENT RECOVERING Markets mainly moved last week in response to news about the spreading coronavirus and the fallout this may have on Chinese and global economic growth. Leading [...]
International Communique No.230 – EQUITY MARKETS STUTTER
EQUITY MARKETS STUTTER The impact of the coronavirus on financial marketplaces is growing all the time, leading equity indices to close sharply down at the end of last week and [...]