Economics and Macro Strategy
We examine what it would take before the Fed cuts rates.
Asset markets remained resilient despite deteriorating fundaments.
Our analysts took a deep dive exploring possible implications from a revival of the Kuala Lumpur-Singapore High Speed Rail project. What could that mean for the economies of the two countries?
Mortgage lending to remain supportive given potential for RRR cut and banks’ willingness to increase their mortgage loan exposure. Our top picks are Times, Aoyuan, Logan and Yuexiu.
Warehouse and office assets are very likely to be included in the first batch of C-REITs, given their defensive nature and rising investor interest.
Earnings risk remain a key concern as overall environment of uncertainty caused companies to scale down investments. Investors advised to stay with defensive sectors.
Rising political tension, lower bond yields and USD on the verge of reversing should make the rest of 2019 very interesting for the gold market.
While the notion that Fed rate cuts tend to support the equity market is true, we believe the types of rate cuts need to be differentiated as equity markets respond differently.
There will be less motivation for the Hong Kong Monetary Authority (HKMA) to intervene the market. We expect Prime Rates to stay at current level in 2019.
Rate cuts from Bank of Korea and Bank Indonesia this week add to the policy easing narrative in Asia. We expect the Monetary Authority of Singapore to join the fray later this year.
Policy narrative amongst the developed markets’ central banks has turned on its head in the past 6-8 months.
GBP in for more pounding; India govvie rally on pause
The ECB strikes a more dovish note than the Fed. 50bps Fed cut is unlikely
The IDR has room to strengthen vs the KRW. Asia central banks are going to ease further.
Investors will be eyeing earnings this week
It is already the best-performing major currency this year
Notes sold by home builders topped 10 other sectors in Asia in the first half
Equities remain the only game in town; investors should look at dividend-yielding equities as alternatives to bonds.
This is no ordinary cycle; Market rally is backed by fundamentals.
We favour ESG funds that are both growth and income-oriented, as part of the barbell strategy.
As the metal of choice wherever electricity is needed, we believe that there is huge potential for the future of copper.
We expect global energy demand to increase at an average rate of about 1.5% per annum from 2017 to 2030 and believe that demand for the three key fossil fuels will not peak until 2030.
Celebrating 50 years, we bring the Jubilee Edition of DBS Asian Insights Conference to you in the form of a post-conference report.