Summer sunshine beckons, but politics still casts a long shadow

As July ends with stifling temperatures, thoughts can turn to the month ahead. August capital markets can be either quiet or decidedly choppy. As investors go on their summer holidays, daily trade volumes decline and liquidity drops out of the market – meaning even small buying or selling pressures can have outsized effects. Of course,…

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EU recovery package: European, limited but still historic

European Union (EU) leaders never let a crisis ruin a good argument. With the global pandemic forcing Europe’s economy into its worse slump since the second world war, EU heads of state butted heads during a tense Brussels summit, for four days and four nights. Their aim was to agree terms on a coordinated spending…

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Going for gold

Gold prices have been on a good run lately. On Thursday, gold reached an intraday high of $1898 per troy ounce, within touching distance of its all-time high of $1921 back in 2011. Physical or safe-haven assets typically benefit from periods of unease or uncertainty. Gold’s credibility comes partly from its centuries-old use as a…

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PPE = Politics, Pressure and Economics

In this delicate economic and financial environment, the world of politics can have a big impact on capital markets. This week, we saw both heads of that political beast, with news stories first buoying and then bruising market sentiment. Earlier in the week, Europe’s top politicians slogged through marathon negotiations to reach a historic deal…

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Discomfort of disappearing safety nets

The summer season has started in earnest and yet, unsurprisingly, this year everything feels different. Most of us are relieved restrictions are easing, meaning we can go about our lives more like how we were used to until a few months ago. While in lockdown, many may have reasonably expected that – in return for…

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Sector rotation or just a timely recalibration?

Investment professionals have many different methods for slicing up the investment world. Typically, we tend to group assets together in terms of region, asset class or sector. Looking at things sector by sector is helpful for judging what to overweight and when, since different industries will react differently to underlying economic conditions (for example, technology…

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US election: Joe is no longer Biden his time

mericans head to the polls in just under four months, and as we edge ever closer to the election, presumptive Democrat nominee Joe Biden’s lead over Donald Trump has grown steadily wider. According to the latest figures from FiveThirtyEight, the former Vice President has the support of 50.3% of the US public, while the current…

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