Oct 26, 2016
The S&P 500 began losing momentum in 2014, and proved increasingly prone to bouts of volatility. That’s why this bull market doesn’t feel like one, even though the index is just about 2.5% off its recent all-time high. Still, we caution against becoming too bearish: historically, prolonged phases of difficult markets were typically followed by great, multi-year equity booms.
Oct 26, 2016
American consumers were more pessimistic in the wake of the presidential elections and further interest rate increases by the Federal Reserve (Fed). The Conference Board’s monthly consumer sentiment index dropped more than expected to 98.6 this month from a revised 103.5 (initially 104.1) in the previous month. On the backdrop of the strong weighting of consumer spending, the Fed will follow consumer confidence closely when considering to tighten monetary policy.
Oct 25, 2016
Equity markets were driven by the AT&T mega merger deal and solid economic data out of the U.S. and Europe. In Frankfurt the Dax closed at the highest level this year and stocks in Tokyo temporarily reached a six-month high, thanks to a weaker yen.
Oct 24, 2016
Over the weekend, telecom giant AT&T announced the intention to acquire media group Time Warner, which includes the movie manufacturer Warner Bros. as well as TV stations such as CNN and HBO, for USD 85.4bn. This could become the largest takeover of the year. From a strategic point of view, the merger of media content with its distribution network makes sense, which, however, will have to be examined by antitrust authorities.
Oct 21, 2016
Most stock exchanges in Asia booked moderate gains on the backdrop of a 15-month high oil price and good demand in the energy sector. The benchmark equity index in Tokyo closed above the 17,000 points mark, reaching the highest level in six months. On the other side of the Atlantic, Federal Reserve members pointed to a soon-to-be expected rate hike.