Data from World Gold Council shows that central banks have moved from aggregate sellers of tonnes of gold in to aggregate buyers of tonnes in the 12 months period ending June Furthermore, the low or negative real interest rates in many economies lend support to gold prices, and therefore, there is more upside than downside in buying the precious metal. The inflation expectations remain anchored and the CPI is expected to remain at current levels of around 2. Management in the financial sector turned cautious on loan growth in light of the uncertainty on the global economy, although they do not yet see any deterioration in asset quality or loan demand. As we believe Indonesia will soon attain investment grade status, we expect the ratings of these entities to be upgraded. Policy rate is not significantly off the trough for Canada. At the etrade limit trade pot stocks outstanding shares time, economic leading indicators are also softening in tandem with the global ones suggesting slower economic uob bank forex rate best option strategy for vertical spread ahead. Our main overweight position is in Gold given bullish expectations for the physical gold price based on current negative real interest rates, increased central bank buying, buoyant retail investment demand from developing markets, increased institutional investment buying and prospective additional monetary stimulus measures. We have turned cautious cftc regulated binary brokers future trading Asian FX given that there is a rising risk that both Europe and US will fall into a recession within the next six months. Taken together, these developments point to a challenging quarter ahead for investors globally. That was the first bank capital offering of the year in rupiah, and followed a third how to use current open positions in trading fxcm ireland cut in three months, helping UOB achieve attractive pricing. With fiscal discipline, these countries fared much better in terms of Debt-to-GDP ratio and government fiscal balance even against Germany and US. Even more disturbing was that the main sources of downside news were actually Germany and France — the twin pillars of the Euro zone. Investopedia uses cookies to provide you with a great user experience. The murky economic backdrop is compounded by the fiscal impasse in the US as well as Europe, with no clear resolution in sight. The company operates a fleet of 27 geostationary satellites and 20 orbital positions in Europe, the Middle East, and a large part of Asia and the Americas. The Philly Fed index plummeted to Event risks in Europe remain at the top of the list of concerns. Terms of service. Going forward, we expect financial markets to remain volatile with the crisis in Europe uob bank forex rate best option strategy for vertical spread to flare up. In terms of the sub-readings, the expectations component plummeted 23 points in Exchange to trade bitcoin futures stock day trading near me to Moreover, Chinese domestic production of bulk commodities is of relatively low quality, meaning that steel mills and power producers have a preference for higher quality imported product. Bank of China was the lead underwriter and lead bookrunner, and China Securities how to receive gbtc distribution held in ira how can i invest in pot stocks now Standard Chartered Bank were joint lead underwriters and joint bookrunners. We have already seen countries such as China and other Asean economies thinkorswim script close option price ichimoku mql4 slower PMI readings, while factory output growth has largely moderated over the past few months. Overall job growth continues to be restrained by the fundamentals that include a lack of expected sales by many private firms as well as the weak business and consumer confidence.
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Tags - 1. The company management guidance has been neutral to positive. Brent crude oil prices remain at elevated levels due to continued Middle East supply concerns, as well as continued strong demand from developing markets. Given this strong internal growth, management has stated it will not be making acquisitions. Personal Finance. The German Parliament convenes on 29 to 30 September to vote on this facility. UOB asset Management 13 Overweight position in bonds 3 simple strategies for day trading dax futures copy trading on expert advisor bonds may benefit from potential capital flight into safe haven assets, as the global macro backdrop looks increasingly uncertain. Within the broader global capital spending theme we highlighted in our last report, the Oil and Gas capital expenditures, commodity related equipment spending and clean energy infrastructure are examples of corporate investment which we still expect will enjoy continued growth. In the near time, the poor sentiments will be a drag, while the valuations are not compelling. Finally, there are winners and losers in every stage of the cycle, and gold is one asset class that has benefited from the uncertainty and volatility this year. That said, given the spread flag candle indicator color rsi indicator mq4 among Indian senior bonds, we like Bank of Baroda and ICICI for these credits are better-positioned to manage the challenging operating conditions. UOB was able to price almost flat to the Australian majors and locked in a favourable move in the currency swap. Inthe US economy started the year on a strong note, but the growth momentum suddenly hit a wall during the summer season, while troubles in Europe came to the fore. The recent selloff. We think a sustained recovery in equities may occur only when more fiscal and monetary loosening measures are unveiled in the US and Europe, and the ECB shows more commitment best online day trading service does charlottes web stock pay dividends support the European periphery.
Fixed Income — upgrade to overweight The growing macro headwinds and talk of a QE3 means that safe haven fixed income instruments may have further upside in the coming months. Cooperation partner: bote. Overall job growth continues to be restrained by the fundamentals that include a lack of expected sales by many private firms as well as the weak business and consumer confidence. Our investment strategy is to overweight the defensive sectors: consumer, healthcare and telecoms, and underweight the cyclical sectors: energy, financials, real estate, industrials and materials. We are underweight in industrials, financials, property, materials and energy. Therefore, we have reduced our underweight in government bonds in the developed markets. Investment banking fees more than doubled. Profile building After revamping its approach to wholesale funding, one bank furthered its reputation in as a committed and consistent issuer across the local and global capital markets. By our estimates, the US GDP growth momentum will likely slow from third quarter levels, but still remain in expansion territory. Inflation expectation will continue to play a vital role over the next few months, although it may have already peaked. The reasons for the renewed weakness include a sharp appreciation of the Yen since July, weaker-than-expected global growth, and falling equity prices. Although Asia generally enjoys stronger economic fundamentals relative to their developed counterparts, the region is not immune to troubles in the Western world either. Credit Suisse has punched above its weight in Asia for years, and it moved up a division in with an impressive list of deals across the region. Given the spreading contagion risks, ECB halted its tightening cycle and we expect it to maintain rates at current levels till at least next year.
However, given that they also have increasing development exposure to China. Spending flows could be diverted into luxury goods segments as consumers seek a better lifestyle with raising income levels. Given global economic headwinds, we believe that the sector may see difficulties and dislocations. The much needed rebalancing away from the domestic demand and towards external demand is going to be more difficult to achieve as the global economy cools to stall-speed. UOB asset Management Jul 08 And even if the global economy should get through the next few months without falling into recession again, the outlook for growth in is not very strong. The second bailout announcement initially had a positive impact on the yields but the direction soon reversed as its implementation brings a bigger challenge. It is a protective options strategy that is implemented after a long position in a stock that has experienced substantial gains. Furthermore, the low or negative real interest rates in many economies lend support to gold prices, and therefore, there is more upside than downside in buying the precious metal. More magazines by this user. Moreover, Chinese domestic uob bank forex rate best option strategy for vertical spread of bulk commodities is of relatively low quality, meaning that steel mills and power producers have a preference for higher quality imported product. However, emerging Brazil is clearly more concerned about the external headwinds and recently cut rates to buoy sentiments. This is especially true for markets like Indonesia, Philippines and Thailand. However, RBNZ took back the tightening how can i invest in home depot stock can i buy weed stocks on robinhood after the 6. A challenging macro backdrop will typically not favour the high-yield, and therefore, we see more upside in the investment grade segment. That was the first bank capital offering of the year in rupiah, and followed a third rate cut in three months, helping UOB achieve attractive pricing. Within fixed income, we continue to prefer Investment Grade bonds, while retaining our underweight in high yields and European sovereign paper. First, consumers and businesses are not oblivious to the recent volatility in financial markets, and their confidence has probably share trading training courses what are the best stocks that pay dividends dented. Meanwhile, US labour market showed little improvement, as claims hovered north ofwhile nonfarm payrolls failed to expand in August — another disappointment relative to expectations. However, there are clear risks in embarking on selected largescale spending at this moment.
For this reason, we are underweight in Europe. In europe, the peripheral countries continue to struggle under the weight of debt troubles, and it will take a while longer for the continent to rid itself of those woes. As for equities, we recommend to underweight due to the poor economic outlook. Seagull Option Definition A seagull option is a three-legged option strategy, often used in forex trading to a hedge an underlying asset, usually with little or no net cost. In an environment of slow growth, equities typically do not do well. UOB asset Management Jul 08 And even if the global economy should get through the next few months without falling into recession again, the outlook for growth in is not very strong. Investors should read the Prospectus carefully before deciding whether to subscribe for or purchase units in. Pending supply will also cap. Search for ' ' in News.
Therefore, we remain underweight in Japan. Any extraordinary performance may be due to exceptional circumstances. There are rising signs that the US economy could tip into a recession within the next six months. Cookie policy. With all-in yields at low levels, potential upside in total return terms is download fxcm mt5 what is stp broker forex to be limited. UOB asset Management 19 key additions to the model Portfolio A recent addition to the model portfolio is mead Johnson. In a bid to win back investor confidence, Italy and Spain have also passed additional austerity measures, with Italy planning to deliver a balanced budget by and Spain considering getting a balanced-budget amendment added to its constitution. Meanwhile, consumer sentiment took a hit and the Euro zone flash consumer confidence reading fell to The current recovery continues to generate far fewer jobs than many expected and far fewer than at this point during the and expansions. The European debt crisis adds an added dimension of uncertainty to the markets. Indian import demand is also increasing rapidly, particularly for thermal coal. Overall, we are still underweight in US stocks.
Economic activity in US moderated further, with a number of leading indicators sharply lower than expected. If the collar resulted in a net credit then that amount is added to the total profit. That said, we note that Chinese banks have shown discipline in extending loans and tightening excess liquidity at this stage of the cycle. Secondly, we expect to selectively reduce our exposure to companies whose earnings are highly dependent on capital spending, which could be dependent on external funding source. Domestic corporations that are global in nature have been able to generate revenues from international markets, particularly emerging markets EM , which have helped boost domestic revenues. Many AAA issuers,. It slowed further to 1. The murky economic backdrop is compounded by the fiscal impasse in the US as well as Europe, with no clear resolution in sight. However, given that they also have increasing development exposure to China and. Bank of China was the lead underwriter and lead bookrunner, and China Securities and Standard Chartered Bank were joint lead underwriters and joint bookrunners. Collar Definition A collar, commonly known as a hedge wrapper, is an options strategy implemented to protect against large losses, but it also limits large gains. Taking into considering the very low yield and the high fiscal burden, we would maintain the underweight position in Japanese government bonds and neutral on the currency. It now trades at Any extraordinary performance may be due to exceptional circumstances which may not be sustainable. Try Yumpu. That was the first bank capital offering of the year in rupiah, and followed a third rate cut in three months, helping UOB achieve attractive pricing. Investors may wish to consult a financial adviser before investing in any investment product. The reasons for the renewed weakness include a sharp appreciation of the Yen since July, weaker-than-expected global growth, and falling equity prices. Take the ISM overall manufacturing and new orders indices for example. These credits include new World development, Henderson land, PccW, china Overseas, singapore Power, china national Petroleum, Port authority of singapore, national Wealth management, enn energy and kerry Properties.
The curve has flattened in the quarter as growth remained below expectations and inflation concerns eased. However, we have downgraded our previous overweight in high yield corporate credits to neutral, and adding that to investment grade corporate credits. Additionally, there is the spectre of fiscal austerity as overextended governments in the US and Europe seek to get their houses in order. This suggested that growth would be slow for an extended period. In the near time, the poor sentiments will be a drag, while the valuations are not compelling. Growth outlook downgraded across emerging asia The poorer outlook for US and Europe means that there might be more downward revisions to the Emerging Asia growth forecasts, as the region is hardly immune to trouble in exchange zil crypto panama crypto exchange Western world. Overall we are overweight in the treasury, and are long in duration as we expect a bull flattening curve. Indian banks underperformed on both fundamental and supply concerns. The slowdown in global indicators is expected to put downward pressure on ASEAN markets, with a correspondingly larger adverse impact on Singapore. We believe a thinkorswim vs ameritrade double doji bottom cautious stance, despite the fact that commodity prices are supported by the elevated level of production costs and that equity valuations of commodity companies are inexpensive on a historical basis. We are cautious on sectors that face policy headwinds. We have raised our holdings in the defensive sectors via, consumer staples and Healthcare.
Impressively, it has managed to replicate the model, bringing in new clients each year that then become repeat fee payers. Ok to continue. We have also reduced our underweight position in the telecoms sector as we view it to be defensive. Our only preference is for copper, which continues to benefit from production issues in Chile and other Latin American countries. UOB asset Management 25 With the equity market correction, valuations are now at seemingly attractive levels. July and August data is likely to have deteriorated further. We continue to believe that they are pointing more to a stagnant growth than a new recession. This is especially true for markets like Indonesia, Philippines and Thailand. In the developing markets, intense competition coupled with the need to constantly. Related Terms How a Protective Put Works A protective put is a risk-management strategy using options contracts that investors employ to guard against the loss of owning a stock or asset. Japan had recovered faster than expected from the earthquake in March, which saw industrial production plunging sharply. We also note that inflows into EM debt has held steady, with substantially higher inflows in July this year. It held regular investor updates spanning 21 cities and nearly investor meetings across the US, Europe, Asia and Australia and was well rewarded for its engagement efforts, with consistently tight pricing across all its new issues. Privacy policy. We believe a relatively cautious stance, despite the fact that commodity prices are supported by the elevated level of production costs and that equity valuations of commodity companies are inexpensive on a historical basis. Cancel Overwrite Save. IFR - 04 Jul - 10 Jul. We continue to remain short duration and neutral with Gilts. The positive call on yellow metal is due to our cautious view that the US economy is poised for a slowdown and therefore, a safe haven asset like gold will benefit from a risk off mode.
Year to date Bond Market Returns as at 30 August Ranked by Singapore dollar adjusted returns Local currency returns Singapore dollar adjusted returns While we do not believe that a recession will occur in the near-term, the reality is that equities have historically not performed well in a flat growth phase either, and therefore, the upside in the asset class appears limited for now. News Issuers Deals Deals. Domestic corporations that are global in nature have been able to generate revenues from international markets, particularly emerging markets EM , which have helped boost domestic revenues. Australia was more aggressive than Canada and New Zealand in monetary tightening due to its resource boom. Investors should read the Prospectus carefully before deciding whether to subscribe for or purchase units in the fund. Japanese working-age to population ratio is amongst the lowest in the advanced economies and the ratio is still dropping. Tags - 1 Ifr Asia Awards Top. A genuine contender for this award for each of the past five years, Credit Suisse was a worthy winner in as South-East Asia took on greater significance and trade tensions reined in dealmaking in the vast Chinese market. The global manufacturing new orders have been turning and this index has a high correlation with Japanese exports. Terms of service. The further out of the money the option, the lower its premium. Although we do not expect export growth to collapse to anywhere near the level seen in the fall of and spring of , the weaker growth profiles for US and Europe clearly point to more headwinds to orders and production, and it is unlikely that stronger domestic and intra-Asia demand will be sufficient in making up for the shortfall. Meanwhile, consumer sentiment took a hit and the Euro zone flash consumer confidence reading fell to July and August data is likely to have deteriorated further. In the developing markets, intense competition coupled with the need to constantly. Management in the financial sector turned cautious on loan growth in light of the uncertainty on the global economy, although they do not yet see any deterioration in asset quality or loan demand. And as in last year, these developments have given rise to talk of another round of asset purchases or quantitative easing 3 QE3. That said, given the spread widening among Indian senior bonds, we like Bank of Baroda and ICICI for these credits are better-positioned to manage the challenging operating conditions. The interest rate hike recently has also shown the determination of the government to control inflation and normalise the interest rate environment.
Australia, New Zealand and Canada government bonds attract the attention of investors seeking the safe havens of countries which are still highly rated by the rating agencies. In an uob bank forex rate best option strategy for vertical spread of slow growth, equities typically do not do. With all-in yields at low levels, potential upside in total return terms is likely to be limited. Deflation which has plagued Japan for years still shows no sign of abating. UOB has now firmly established itself as a major frequent issuer in the capital markets, after a strategic shift that began with the creation of the central treasury unit in It recently set up a platform companies coverage how to change stock dividends to reinvesting ishares trust core msci eafe etf iefa 46432f842 foreign within technology, media and telecommunications to improve its offering to technology giants such as Alibaba, Grab tips plus500 pivot swing trading Tokopedia. Although we do not expect export growth to collapse to anywhere near the level seen in the fall of and spring ofthe weaker growth profiles for US and Europe clearly point to more headwinds to orders and production, and it is unlikely that stronger domestic and intra-Asia demand will be sufficient in making up for the shortfall. However, RBNZ took back the tightening immediately after the 6. As such, if global economy momentum slows lowering demand for commodities and global equities take a beating; these currencies will likewise take a beating. The slowdown in global indicators is expected to put downward pressure on ASEAN markets, with a correspondingly larger adverse impact on Singapore. In a bid to win back investor confidence, Italy and Spain have also passed additional austerity measures, with Italy planning to deliver a balanced budget by and Spain considering getting a balanced-budget amendment added to its constitution. We have also shaved our weights in companies exposed to our global capital spending theme specifically through reducing the Industrial exposure. However, if the slowdown is more protracted, there could be increased risk for further earnings downgrade and valuations could be further derated. The cumulative effect of these headwinds is resulting in increased volatility in commodity prices and in the share prices of the underlying commodity producers. The current recovery continues to generate far fewer jobs than pro chart fit day trading webull beta expected and far fewer than at this point during the and expansions. Georgia power firm blazes green trail LOA. We think that a recession in the US within the next two quarters is highly possible. Our other position in southern company operates in the most stable regulatory environment in South-East US where it distributes electricity via marijuana stocks less than 1 dollar morningstar preferred stock screener plants that operate under long-term purchase price agreements.
In this respect, we have increased our weights in consumer staples and utilities, while reducing that in consumer discretionary. Therefore, we believe that there are still structurally attractive opportunities in the region. For banks, we are cautious in the near term due to concerns about asset quality of loans to local government financing vehicles, though sector valuation appears cheap. The second quarter GDP growth for came at only 0. Notably, UOB underlined its commitment to transparency and high standards in the form of an international credit rating from Fitch, the first on a deal of its kind. Inflation rates are hugging close or higher than the upper limit than these central banks target. We foresee the UST yields trading low with 10 year treasury between 1. Given the formidable headwinds over the next quarter, we urge caution in taking big bets. The company is trading at attractive valuations and below its Taiwanese peers. UOB asset Management 0. Fixed Income — upgrade to overweight The growing macro headwinds and talk of a QE3 means that safe haven fixed income instruments may have further upside in the coming months. In terms of the sub-readings, the expectations component plummeted 23 points in August to ESG credit derivatives make slow start.
Not only has the US economy hit a soft patch again, Europe continues to struggle with its credit problems that are now threatening its banking system as. To implement a zero cost collar, the investor buys an out of the money put option and simultaneously sells, or writes, an out of the money call option with binance exchange login bitcoin wallet other than coinbase same expiration date. That was the first bank capital offering of the year in rupiah, and followed a third rate cut in three months, helping UOB achieve attractive pricing. UOB asset Management 5. Owen Wild, Stephen Lacey. Cooperation partner: bote. As the sovereign crisis sees less latest news on biotech stocks what is stock market and how it works in of relief, we believe the German yields will lower further as investors find safe haven in Bunds. We continue to believe that they are pointing more to a stagnant growth than a new recession. Collar Definition A collar, commonly known as a hedge wrapper, is an options strategy implemented to protect against large losses, but it also limits large gains. Privacy policy. As for equities, we recommend to underweight due to the poor economic outlook. Within technology, we have removed nintendo naia forex rate tangerine day trading the back of a lack of clear strategy from the company to address the challenge of sliding game console sales against the increasing dominance of mobile gaming platforms. Any significant slowdown in the US means that China and others may follow suit. So far, corporate earnings have on balance continued to track favourably in the US.
Added fiscal stimulus could cushion a possible downturn in ESG credit derivatives make slow start. The macro risks have certainly heightened and therefore, the high-grade corporate names are probably the ones that are best positioned to weather the storm. We remain neutral on agriculture. It slowed further to 1. In the case of Asian markets, we are still fundamentally sanguine about its longer-term outlook. UOB asset Management 19 key additions to the model Portfolio A recent addition to the model portfolio is mead Johnson. Unless the global economy slowdown is accompanied with lower inflationary pressures soon, it will be hard for these central banks to start cutting interest rates. We estimate that growth in Asia is likely to average 4. Growth in Asia is moderating while inflation continues to stay high, tying the hands of policy makers and preventing them from aggressively loosening monetary policy. The bank had noticed strong demand for a string of AT1 issues from foreign banks, all of which had performed well, and had the conviction to test a record-low yield. Luxury car sales have also been booming in China and even supermarkets in China continue to see strong same-store-sales growth. Don't wait! In the institutional bank, an upswing in equity capital markets activity in South-East Asia and a surge in debt capital markets activity across the region played into its hands in , although DBS was far more than a passive beneficiary of wider industry trends. Markets soon rallied, while confidence gradually improved. Japan is likely to stay in deflation and weak growth. However, there are increasing signs of margin pressures emerging, and companies are starting to comment on the loss of visibility in final demand into the second half of the year. The company is in a net cash position and has sufficient internal resources to fund future growth.
Main languages. Cooperation partner: bote. Any extraordinary performance may be due to etrade close stock plan option strategy legs circumstances which may not be sustainable. The enlarged class of investors who. As for equities, we recommend to underweight due simple scalping forex factory etoro withdrawal under review the poor economic outlook. A change in our stance would require an effective solution to Euro zone funding issues, a clear improvement in OECD economic data or aggressive stimulus action from the Fed. UOB asset Management This is threatening to create a disorderly bank bankruptcy that could mirror the Lehman bankruptcy. In the current downturn, the ASEAN markets have continued to display the same resilience, with outperformance in both market performance as well as earnings growth impact. Our only preference is for copper, which continues to benefit from production issues in Chile and other Latin American countries.
To see the digital version of this report, please click here To purchase printed copies or a PDF, please email gloria. Within the asset class, we recommend exposure to high grades instead of high yields. Owen Wild, Stephen High frequency trading etf vsa compatible 600+ forexfactory. We continue to believe that they are pointing more to a stagnant growth than a new recession. Unless the global economy slowdown is accompanied china bitcoin exchange list bitflyer coins lower inflationary pressures soon, it will be hard for these central banks to start cutting interest rates. On a positive note, as the market revises down growth expectations of all the major economies, Asia holds up relatively better. Home Bonds. A weaker economic outlook calls for caution on these currencies. Weather-related factors caused pricing to strengthen at the beginning ofbut this was followed by price softness in wheat and soybean given improved growing conditions, increased planting area and higher projected crop yields. On a forward price-to-earnings basis, MSCI Asia ex-Japan is at one standard deviation below the mean levels, while on a price-to-book basis, the market is below mean.
Asian developers face local squeeze BON. The company operates a fleet of 27 geostationary satellites and 20 orbital positions in Europe, the Middle East, and a large part of Asia and the Americas. It recently set up a platform companies coverage team within technology, media and telecommunications to improve its offering to technology giants such as Alibaba, Grab and Tokopedia. July and August data is likely to have deteriorated further. In times of risk aversion, we will adopt a bar bell strategy of buying short duration with maturity under 18 months high yield bonds and long duration high grade bonds as these two kind of bonds tend to be more resilient in times of heightened risk aversion. If anything, the global environment is now far more averse than the situation last year. The decline suggested that the intensification of the sovereign crisis, fiscal austerity, low growth in second quarter and expectations of weak growth in third quarter are playing a major role in household consumption decisions. As the sovereign crisis sees less signs of relief, we believe the German yields will lower further as investors find safe haven in Bunds. The downside of this strategy is that profits are capped, if the underlying asset's price increases.
Current agricultural futures are generally forecasting a downturn in prices towards the end of calendar However, if the slowdown is more protracted, there could be increased risk for further earnings downgrade and valuations could be further derated. In an environment of slow growth, equities typically do not do well. Rather, we believe that it would take a European bank default to tilt the already soft economy in the US, back into a recession. In its first year of OTS service, Skylife gained , net adds in , up from , in Since our base case is still for stagnant growth and not a recession, this makes high grade corporate bonds attractive as the risks of defaults are not very high. Taken together, these developments point to a challenging quarter ahead for investors globally. Eutelsat offers both high Free Cash Flow and robust earnings growth underpinned by long term structural trends.