Building up capital

29 October 2018

What's new in the financial markets?

Thierry Masset

Chief Investment Officer ING Belgium

Thierry Masset, Chief Investment Officer reviews the economic and financial news. Every month, he analyses events that have impacted the financial markets. The context of any potential stock market fluctuations is equally scrutinized. You can find this market analysis and ING's investment strategy by consulting our "Monthly Market Review".

So what are the key points this month?
  • A violent surge in U.S. Treasury yields, unleashed by relentless American economic growth and expectations for tighter policy, has repriced risk assets from credit to equities.
  • Strong earnings have been the most important factor that has enabled the stock market to ignore the headwinds it has faced this year. If the projection for future earnings suddenly becomes less bullish, it could/should be enough to upset the balance between the bullish & bearish macro factors that are facing the markets right now.
  • To hedge against this uncertain environment, we continue to prefer defensive stocks, such as pharmaceutical ones, companies with big capitalization or with stronger balance sheet, cash in yen or safest bonds.

“It is not “La Dolce Vita” on the financial markets with a return of volatility and especially on the equity market, where the VIX index jumped as high as 23.7, a level not reached since March and exceeding this year’s average (15.2).”

Read the full "Monthly Market Review" .

Want to know more?
Discover our previous issues :
Date Title Link

September 2018

Volatility is set for a comeback

August 2018

Equity markets

July 2018

A disastrous G7 summit

June 2018

Cycle is maturing but not ending

May 2018

Markets struggle on geopolitics

April 2018

9-year-old bull market is not dead

March 2018

Earnings boom means equity optimism makes senses

February 2018

A "gradual approach" to raising interest rates

January 2018

Resynchronization of global growth