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Latest from Lyxor

Latest from Lyxor

27 May 2019: Trade war hits markets further 

It was a bad week overall for global equities as concerns about the escalating trade tensions between China and the US. China has made it clear that it will not make concessions on key issues, emerging markets suffered outflows and central banks in Asia intervened to stabilise their currencies.

In the US, the decline in business surveys in May raises the question of whether the Fed could move to an easing bias at the next FOMC meeting in June. The ten-year inflation breakeven fell to 1.75% and is now down 23bp over the past month, supporting the market’s view that the Fed will cut rates this year.

In Europe, UK Prime Minister Theresa May announced that she will step down on 7 June. Preliminary PMIs in the euro area disappointed, dragged down by lower figures in Germany.

In brighter news for investors, Indian equities hit a new all-time high after Prime Minister Modi was re-elected.  

Source: Lyxor International Asset Management. Figures reported in local currency terms. Past performance is no guide to future returns. Data as at

Our key calls

Week commencing 27/05/2019

Uncertain markets make US Treasuries look attractive 

Investors are clearly concerned about the downturn in relations between China and the US, and that makes US Treasuries look attractive for their safe-haven status. What’s more, with inflation in the US under control, the Fed would be able to cut rates should trade tensions increase the risks to growth. This is also supportive of Treasuries. 


Brexit uncertainty continues to support UK Gilts

With UK Prime Minister Theresa May announced resignation,  markets will be closely watching the looming leadership contest. The possibility of a subsequent general election (and what that would mean for Brexit) only increases uncertainty. Gilts should continue to perform well. 

Indian equities to remain insulated from trade tensions

Incumbent India Prime Minister Narendra Modi surprised markets by increasing his majority, which has helped Indian equities hit all-time highs. While Chinese stocks are likely to suffer as trade tensions ramp up once again, Indian equities should be much more insulated. 

Things we are watching out for

The Main Event

comming soon

27
May

Coming soon...

Other major events

4 more things to put in the diary

06 June

ECB meeting

19
June

Fed meeting 

25 - 26
Jun

OPEC meeting

2
July

Inaugural new EU Parliament

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These are the views, opinions and recommendations of Lyxor International Asset Management (“LIAM”) Cross Asset and ETF research analysts and/or strategists as at 08 April 2019. To the extent that this research contains trade ideas based on macro views of economic market conditions or relative value, it may differ from the fundamental Cross Asset and ETF Research opinions and recommendations contained in Cross Asset and ETF Research sector or company research reports and from the views and opinions of other departments of LIAM and its affiliates. Lyxor Cross Asset and ETF research analysts and/ or strategists routinely consult with LIAM sales and portfolio management personnel regarding market information including, but not limited to, pricing, spread levels and trading activity of ETFs tracking equity, fixed income and commodity indices. Trading desks may trade, or have traded, as principal on the basis of the research analyst(s) views and reports. Lyxor has mandatory research policies and procedures that are reasonably designed to   ensure that purported facts in research reports are based on reliable information and (ii) to prevent improper selective or tiered dissemination of research reports. In addition, research analysts receive compensation based, in part, on the quality and accuracy of their analysis, client feedback, competitive factors and LIAM’s total revenues including revenues from management fees and investment advisory fees and distribution fees. Click here for more.