Japanese stocks have recently been one of the best performing global equity markets. MSCI Japan gained 2% in September, while the US and All Country World Indices each fell more than 4%. The outperformance reflects domestic…
China’s NBS and Caixin Manufacturing PMIs sent a contradictory signal for September. The official manufacturing index slipped into contractionary territory after declining 0.5 points to 49.6. Consensus estimates anticipated a…
On Monday, Senate Republicans blocked a bill that would have extended federal funding to early December, provided emergency relief, and suspended the debt ceiling until December 2022. Democrats are now facing a tight deadline.…
Highlights The Evergrande crisis is not China’s Lehman moment. Nonetheless, Chinese construction activity will decelerate further in response to this shock. Global equities are frothy enough that a weaker-than-expected Chinese…
The performance of global risk assets improved somewhat on Tuesday following Monday’s tumble on the back of concerns about the potential implications of an Evergrande default. Nevertheless, risks remain elevated. A key…
Highlights We cannot predict how China will manage Evergrande precisely but we have a high conviction that it will do whatever it takes to prevent contagion across the property sector. However, China’s stimulus tools are losing…
Highlights The House Ways and Means Committee’s tax proposals are a slight positive surprise for investors. They envision raising $1.5 trillion in new revenue, down from expectations of $2.6 trillion. The House’s tax plans…
Feature Chart 1Chinese Offshore Stocks Tumbled Amid Regulatory Crackdowns Relative to the global equity index, onshore and offshore Chinese stocks have fallen by 18% and 32%, respectively, since their peaks in mid-February (…
Highlights Economic policy uncertainty is rising in the US and will generate volatility this fall. But by the end of the year the result should be more fiscal reflation. Biden’s approval rating is now “underwater”…