Top-10 macro trade ideas for 2022


In this publication, we outline our favourite 10 strategies for the year. We will take stock of the ideas at the mid-year mark and assess their usefulness for the investor.
Group Research12 Jan 2022
  • Rates: We like SGD and CNY rates; we are also positioned for relative policy rate gaps in EM
  • FX: We like USD against CNY and JPY, and expect SGD NEER to appreciate
  • Credit: Asian energy and basic materials credit to rally in 2022
  • Equities: We see upside for China/HK and Singapore stocks
Photo credit: Unsplash (ash-from-modern-afflatus)


We present our favourite macro trading strategies for the year

Key themes include inflation, Fed policy lift-off, economic reopening around an endemic Covid, and China credit stress

Idea #1 Double down on SGD rates outperformance

Idea #2 China’s divergences to be reflected in outperformance of CNY rates

Idea #3 Position for rate hike pricings to rise in Malaysia vs fall in Korea

Idea #4 CNY to play catchup to USD strength

Idea #5 USD/JPY to extend rise with rising US bond yields

Idea #6 More downside for EUR/SGD on a second tightening by MAS

Idea #7 Thai banks’ subordinated debt looks attractive with strong capital cushions

Idea #8 Asian energy and basic materials credit enjoys tailwinds from broader reopening

Idea #9 China/HK policies likely to revive equity risk appetite

Idea #10 Singapore equities to lead the region’s transition to living with COVID


To read the full report, click here to Download the PDF.

 

Taimur Baig, Ph.D.

Chief Economist - Global
[email protected]

Chang Wei Liang

FX & Credit Strategist, Global
[email protected]

Nathan Chow 周洪禮

Senior Economist and Strategist - China & Hong Kong 高級經濟學家及策略師 - 中國及香港
[email protected]

Eugene Leow

Senior Rates Strategist - G3 & Asia
[email protected]


Duncan Tan

Rates Strategist - Asia
[email protected]

Philip Wee

Senior FX Strategist - G3 & Asia
[email protected]

Dennis Lam Che Jung

Team Head, Equities Research
[email protected]

Yeo Kee Yan

Specialist, Equities
[email protected]

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