Emerging market equities have returned to favour with European investors, for as long as it lasts. After 10 straight months of net outflows, money is finally flowing into the asset class again, according to the latest Morningstar fund flows data.
An increase in monthly manufacturing suggests the possibility for economic improvement after Japan fell into recession in Q3.
Japan falling into a technical recession despite the monetary stimulus measures that have been taken does not mean there are no bright spots in the country, including a booming construction sector.
SuMi TRUST economist Genzo Kimura has forecast a GDP decline of 0.3% will be revealed when Japan publishes figures on Monday.
Marginally weaker wage growth figures may give Mark Carney the excuse he needs not to raise rates, says Shaun Port, chief investment officer at Nutmeg.
A slowdown in China is to be expected, but not a hard landing, meaning expectations on European equities are now too pessimistic, according to BlackRock’s Nigel Bolton.
The number of jobs created in the United States in October rose to 271,000 the Labor Department revealed today – far above the consensus forecast of 182,000- fuelling expectations of a December rate hike.
The potential for shares to become mis-priced is greater now than at any point in my career, said Mark Wharrier, manager of the BlackRock UK Income Fund.
The European refugee crisis could cause a rise in market volatility, said Frédérique Carrier, director of European equities at RBC Wealth Management.
About $105bn flowed out of mixed asset products in Q3, and total net flows from retail investors were down by more than half, according to data from Strategic Insight.
A year after the decision to increase its quantitative easing programme the Bank of Japan (BoJ) voted on Friday, by a majority of eight to one, to leave its policy unchanged at ¥80trn a year.
An upbeat Fed has caught markets by surprise, reinforcing the high probability of a rate hike in December, according to commentators.
