Search results for: ecb

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ECB QE – A boost for markets but not a cure of all ills

We are positive on the financial market impact of European QE if it brings down risk premia such as peripheral bond spreads. The tendency amongst investors will be to own more risk assets such as equities, particularly as the ECB’s move will help to keep interest rates low globally.

Tagged with: Global Economy, Global Perspectives, Investing

ECB QE – No green light for interest rate risk

Fed officials should be encouraged by the ECB’s announcement to begin a large-scale bond buying program in an effort to shore up growth and prevent deflation. The action reduces downside risks to global growth, and thus the risks of spillovers to the domestic economy.

Tagged with: Economic/Markets Outlook, Economy, Global Economy, Global Perspectives, Investing

Is the ECB’s stimulus a positive for European stocks?

Under yesterday’s expanded QE programme, the European Central Bank (ECB) will implement combined monthly purchases of €60bn to end September 2016 or until there is sustained improvement in path of inflation (i.e,. a far-reaching commitment,  though they have said they will not buy more than 25% of the outstanding stock).

Tagged with: Global Economy, Markets

Europe – The darkest hour is just before the dawn

The European Central Bank is embarking on quantitative easing at a time when tailwinds are already beginning to build behind the euro area economy. A more constructive economic outlook could have important implications for European markets.

Tagged with: Equities, Global Economy, Global Perspectives, Markets

The Greek crisis takes a new turn

By Toby Nangle, Global Co-Head of Multi Asset & Head of Asset Allocation, EMEA, and Martin Harvey, Portfolio Manager, Fixed Income, EMEA

Talks between Greece and its creditors collapsed over the weekend. The Greek government has called a referendum on July 5 to accept or reject its creditors’ terms — a move almost universally considered to be a poll on the continued membership of the euro area.

Tagged with: Global Economy, Markets

Greece: Referendum reaction

Greek Prime Minister Alexis Tsipras won a resounding mandate to reject the package of austerity measures on the table in Greece’s referendum yesterday. This is but the latest twist in a road that increasingly seems to be leading towards Greece’s departure from the eurozone.

Tagged with: Global Economy, Monetary Policy

The Greek tragedy unfolds

Although a Greek default and exit would be uncharted territory, the ownership structure of Greek debt has shifted considerably, and this should limit contagion within the wider eurozone. We suspect that the realization that the eurozone is no longer irrevocable would not be merely shrugged off by markets, particularly in the periphery.

Tagged with: Global Economy

Global market outlook

In equity markets, we are generally positive on the major regions except emerging markets, which we continue to underweight. There are some selective opportunities in EM countries benefitting from lower oil prices and where the respective governments have committed to business-friendly reforms.
In bond markets, we see an increasing disconnect between the U.S. and UK, where yields should move higher, and Europe, where the ECB began intervening in secondary markets on 9 March.

Tagged with: Economy, Equities, Global Economy, Global Perspectives

Making sense of negative interest rates

Buying bonds at negative rates is a guarantee of losing money in nominal terms.
Central banks must keep real rates low to help their economies reach a self-sustaining growth path. Investors should focus on asset classes that benefit from this growth rather than providing the free money to support it.

Tagged with: Equities, Fixed Income, Global Perspectives, Investing

European equities – Yesterday’s bears become today’s bulls

We expect to see European earnings and economic growth expectations firming during the year. Even with the strong move in markets so far this year, European equity valuations are not unattractive in our view.

Tagged with: Global Economy, Global Investing, Global Perspectives
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About Us

Columbia Threadneedle Investments is a leading global asset management group that provides a broad range of actively managed investment strategies and solutions for individual, institutional and corporate clients around the world. With more than 2,000 people, including over 450 investment professionals based in North America, Europe and Asia, we manage $503 billion†† of assets across developed and emerging market equities, fixed income, asset allocation solutions and alternatives.

††In U.S. dollars as of June 30, 2015. Source: Ameriprise Q2 Earnings Release. Includes all assets managed by entities in the Columbia and Threadneedle groups of companies. Contact us for more current data.