Standard Chartered Money Insights

Risk assets wobbled and stock market volatility jumped as Fed meeting minutes showed most policymakers want to start tapering bond purchases this year. Should investors be worried? While the minutes surprised markets, given prior expectations of an early 2022 tapering start, we do not see a slightly earlier tapering imparting a lasting drag on risk assets.

Speakers: 

• Marco Iachini, Cross-Asset Strategist, Standard Chartered Bank
• Manpreet Gill, Head of Fixed Income, Currency and Commodities (FICC) Investment Strategy, Standard Chartered Bank

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While our Chief Investment Office’s central view is that inflation will likely be transitory, in part 2 of this conversation, strategists Audrey Goh and Trang Nguyen delve deep into historical data to offer investment options to consider across a range of inflation scenarios.

Speakers:

• Audrey Goh, Senior Cross-Asset Strategist, Standard Chartered Bank
• Trang Nguyen, Portfolio Strategist, Standard Chartered Bank

To read the full publication, click here.

For more of our latest market insights, visit Market views on-the-go.

After more than a decade largely below target, recent inflation data in the US have jumped sharply. However, ample slack in labour markets lead us to believe inflation will prove transitory. In part 1 of this conversation, strategists Audrey Goh and Marco Iachini elaborate further on why the Chief Investment Office believes inflation will be transitory and run through a scenario analysis of what could drive downside risks to this view. 

Speakers:

• Marco Iachini, Cross-Asset Strategist, Standard Chartered Bank
• Audrey Goh, Senior Cross-Asset Strategist, Standard Chartered Bank

To read the full publication, click here.

For more of our latest market insights, visit Market views on-the-go.

In this podcast, DJ Cheong talks about recent risk-on/risk-off dynamics and how that may affect currency markets. Traditional safe-haven currencies like the JPY and CHF have notched gains amid global growth fears, continued COVID-19 concerns and geopolitical uncertainty in the Middle East. Pairs like EUR/JPY and AUD/JPY look interesting here and could offer investors a tactical opportunity to position for continued risk aversion in the days ahead.

Speaker:

• DJ Cheong, Investment Strategist, Standard Chartered Bank

For more of our latest market insights, visit Market views on-the-go.

Our strategy of averaging into Value-style equities may be starting to pay off. The revival of confidence in the US economic recovery after a solid jobs report and yet another quarter of surprisingly strong US and European corporate earnings have led to a recovery in bond yields. Although the resurgence of COVID-19 worldwide remains a concern, we see the renewed confidence as a catalyst for global Value-style equities, regions and sectors.

Speakers: 

• Steve Brice, Chief Investment Officer, Standard Chartered Bank
• Marco Iachini, Cross-Asset Strategist, Standard Chartered Bank

For more of our latest market insights, visit Market views on-the-go.

Gold had a rough start to the week, falling as low as 1685 before paring losses. In this episode, DJ Cheong delves deeper into the precious metal’s latest sell-off and whether the price correction offers investors an attractive entry point.

Speaker:

• DJ Cheong, Investment Strategist, Standard Chartered Bank

For more of our latest market insights, visit Market views on-the-go.

Monetary policy hawks have selectively started to appear along the horizon. Several Emerging Market and commodity exporter central banks have started to taper bond purchases or raise policy rates.

Recent signals from Fed policymakers support our expectation of a tapering announcement later this year. This risks triggering temporary market volatility, but strong growth and earnings data give us confidence to buy US and European equities on any such dips and sell into USD rallies.

Speakers: 

• Marco Iachini, Cross-Asset Strategist, Standard Chartered Bank
• Abhilash Narayan, Senior Investment Strategist, Standard Chartered Bank

In this episode, we focus on the AUD and NZD, comparing their central bank policies, economic performance and sensitivity to risk-off sentiment. We have a preference for the NZD over the AUD in the near-term as the RBNZ remains one of the more hawkish central banks around. Hence, we believe AUD/NZD could see more downside in the coming weeks.

Speaker:

• DJ Cheong, Investment Strategist, Standard Chartered Bank

We see equity markets transitioning to a slower, but more sustainable, pace of gains as countries vaccinate and learn to live with COVID-19. US and European equities remain preferred. We view Asia ex-Japan and China equities as core holdings, but await more attractive entry levels. In the coming months, markets are likely to focus on the timing of Fed tapering of bond purchases, China’s policy direction, inflation expectations and the effectiveness of COVID-19 ‘vaccinate-and-normalise’ strategies.

Speakers:

• Manish Jaradi, Senior Investment Strategist, Standard Chartered Bank
• Audrey Goh, Senior Cross-Asset Strategist, Standard Chartered Bank

UK hospitalisation and mortality rates will be key for the UK’s ‘vaccinate and live with it’ COVID-19 strategy. While investors are likely to shuttle between fear and hope, we expect the UK's strategy to succeed, which should gradually lift the GBP.

Speaker:

• DJ Cheong, Investment Strategist, Standard Chartered Bank