2019 Mid Year Outlook: Embracing Uncertainty in a Slower Growth Environment
By Citibank Asia Pacific & EMEA Wealth Management |
After a strong rebound that saw Global equities gaining 17.4% in the first half of 2019, we are now entering seasonally weaker summer months. This weakness is further amplified by US-China trade risks dominating global market concerns. Citi analysts see markets as unprepared for the heightened risk of a prolonged economic struggle that could extend beyond the two economies and as a result, a period of de-risking within equities should be expected.
Uncertainty could see Safe haven Currencies in Vogue
By Citibank Asia Pacific & EMEA Wealth Management |
The extension of the US-China trade dispute together with other unresolved geopolitical concerns – Brexit, a potentially more populist European parliament and US-EU/ Japan trade tensions risk posing headwinds to the 2H19 outlook. This is likely to support safe haven currencies.
By Citibank Asia Pacific & EMEA Wealth Management |
Financial markets weakened over the course of May as investors came to see a lower probability of a quick resolution of trade disputes. In light of trade fears revival, Citi analysts have scaled back on risk allocations by tactically reducing global equities to underweight.
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