Bank of Japan’s mixed messages likely a green light to tactically drive Yen towards 150 against USD
By Citi Wealth Insights |
JPY: The BoJ leaves its monetary settings unchanged at its September MPM on Friday while also keepings its forward guidance unchanged. The BOJ continues to note “extremely high uncertainty surrounding economies and financial markets at home and abroad,” (the same language as July) which makes it difficult to make sweeping policy changes.
Wealth Insights | Asset Allocation | Economy | Asia-Pacific | US | Equities | Fixed Income
Weekly Market Analysis: The World Economy is Changing and So Are Our Portfolios
By Citi Wealth Insights |
China’s economy is suffering from several headwinds and its economic growth is in jeopardy. The US, by comparison, is outperforming our expectations as confidence in a stronger recovery is rising. A large rise in services consumption is boosting employment at the same time manufacturing is contracting. This bodes well.
Annual & Mid-year Outlook | Wealth Insights | FX | Asset Allocation | Asia-Pacific
Mid-Year Outlook 2023: The Citi View on the Dollar
By Citi Wealth Insights |
A decade ago, we predicted that the US dollar would achieve far greater value and that the US would attract more investment. Now, Citi’s view is that the USD is heading for a bear market and is likely to end the year lower. This turning point creates a series of potential opportunities.
The valuation of Chinese equity markets has become far more attractive after the recent correction. MSCI China is now only valued at 53% of the S&P 500, a historic low. Given the expected additional fiscal policy stimulus and further monetary policy easing, Chinese asset prices will likely see support. CIO maintains a positive view on the Chinese equity market for long-term investors.
Oversold Chinese stocks present a potential tactical opportunity
By Citi Wealth Insights |
The recent surge in COVID-19 infections in China hit a two-year high on Tuesday, driving stocks in the region to end the day at 21-month lows and raising serious concerns about the economic costs in the government’s quest to contain the disease. Makers from flash drives to glass for Apple’s iPhone screens are facing large setbacks as they comply with new stringent curbs, further straining global supply chains. Four cities (including Shenzhen, the home of major local tech firms like Huawei, Tencent, ZTE, Oppo, etc.) have been locked down, and Shanghai is also at risk of a lockdown.
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(MLP’s) - Energy Related MLPs May Exhibit High Volatility. While not historically very volatile, in certain market environments Energy Related MLPS may exhibit high volatility.
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