US-China relations

Equity markets are being driven by the fact that bond yields have collapsed.

While macroeconomic concerns remain, the outlook for European equities is now more positive than a year ago.

Structural and macroeconomic pressures blamed

Despite some emerging evidence that Europe's economic prospects may be stabilising, the direction of the region's equity markets remains determined by extraneous factors, notably the progress of ongoing US-China trade negotiations.

Brexit and US-China tensions still to deal with

Headwinds expected into Q2

As we enter Q2, we see particular value in the hard currency and frontier market spaces within emerging market debt (EMD).

Having spoken to numerous market participants, we discern a number of areas of current concern.

Market correction becoming more inevitable

There is something strange going on in Europe according to some commentators - the market has rallied aggressively post the trade war-induced sell-off in the fourth quarter of 2018.