Salient to Investors:
OECD predicts faster global economic growth, led by the US and Japan: growth in member countries will accelerate to 2.3 percent in 2014 from 1.2 percent in 2013, China, will grow 8.4 percent in 2014 after growth of 7.8 percent in 2013.
Neil Mackinnon at VTB Capital said investors’ guessing what the Fed will do has been central to the performance of all asset classes.
Analysts expect yields on US Treasuries, German bunds and UK gilts to rise by year-end, and fall in Japan.
Bruce Bittles at RW Baird says the market is a power house and his biggest concern is many are being pushed into the market that really don’t want to be there and will exit at the first sign of trouble.
Brian Kim at RBS Securities said some Chinese data has not been as resilient as expected and concerns about the China story have been rising, especially as commodity prices are moving lower on the back of that.
Russell Silberston at Investec Asset Mgmt said commodities are underperforming because of concern about growth, especially in China.
Ole Hansen at Saxo Bank A/S said ample supply is keeping a lid on agricultural prices, while precious metals are struggling with higher bond rates and subdued inflation. Hansen said Brent oil may rebound to $110 in the next few months because any supply worries impacts Brent the most, while US inventories of crude oil are at a record high but not easily exported.
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