Building up capital

2 July 2019

What's new in the financial markets?

Thierry Masset

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?
  • The U.S.-China dispute is still the most significant hit to a cyclical recovery.
  • For central banks, the darkening outlook will likely propel them deeper into dovish territory.
  • Companies with a domestic business focus and defensive stocks should outperform in the near term.

The bond rally gathered pace, with sovereign 10-year yields dropping to record lows (-0.30% in Germany and below 2.10% in the U.S.), as the U.S.-China conflict and political risks in Europe boosted demand for the safest assets. Shaky global growth and simmering trade tensions are leading bond investors to price in additional rate cuts at major central banks, even though doing so will re-ignite concerns about potential side effects. Markets are predicting up to three reductions in the U.S., along with one in the Euro-Area and in Japan, where the benchmark is already negative. With little ability to cut beyond that, traders are also starting to focus on a potential increase in unconventional measures.”

Read the full "Monthly Market Review" .

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

May 2019

"Tariff Man" is back...

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April 2019

Tiger Woods and equities on the roof of the world

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March 2019

The disconnect between bonds and stocks is coming back

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Februari 2019

A V-shaped recovery

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January 2019

On the dark side of a late-bull market

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