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Market Updates

Edgar Walk, Chief Economist at Metzler Asset Management, comments regularly on various topics surrounding capital markets, the economy and monetary policy. Read about Walk’s assessments in quarterly and annual capital markets outlooks. Under market:update Special Topics, you can read about background topics, markets, regions and forecasts. In addition, asia:insight offers insight into the economy in Asia. 

 

market:update Special Topics

Illustration Sky Euro | Metzler
At second glance, euro corporate bonds look more attractive than their US counterparts

With average yields of around 3.7%, US corporate bonds look more attractive than euro corporate bonds at first glance. At second glance, however, Edgar Walk, Chief Economist at Metzler Asset Management, believes the picture is completely different for investors in the European Monetary Union. For them, the necessary currency hedging for US corporate bonds would reduce yield, and the significantly higher interest rate risks and the much higher net debt of US companies would also have a negative impact. Ultimately, the third criterion "economic cycle" could tip the scale in favor of Europe. Walk believes the foreseeable turnaround in Europe is another valid argument in favor of euro corporate bonds over their US counterparts. 

Read more on this topic in the newest special edition of market:update.

market:update Quarterly Outlook

Illustration Euro | Metzler
Capital Markets Outlook on the 2nd quarter 2019

Bond markets and equity markets performed well in the first quarter. The about-face in monetary policy by the US Federal Reserve and the European Central Bank boosted global equity prices in particular. Although the economic downturn accelerated in the first quarter, Edgar Walk, Chief Economist at Metzler Asset Management, considers it unlikely that the euro zone will slip into recession. Leading indicators point to an economic upswing starting at mid-year. The US economy is growing at a good pace and China could see an economic turnaround. Sources of great uncertainty still include the unclear Brexit outcome, the latent debt crisis in Italy, and the trade conflict between the USA and China.

Read more about Walk’s assessments and forecasts in his Capital Markets Outlook on the second quarter.

asia:insight

market:update Japan | Metzler
Reiwa era ushers in fresh opportunities

June 11, 2019 – asia:insight

With the recent handing over of the throne to Emperor Naruhito and the start of the Reiwa period ("beautiful harmony"), many Japanese associate hope for better times. From their point of view, Japanese Prime Minister Shinzo Abe has laid a solid foundation for a positive epoch with the Abenomics. The partially profound reforms have led to a rethink, not only in foreign trade and on the labour market. In Metzler’s new asia:insight, you can find out which additional measures have improved Japan’s prospects in global competition.

market:update Annual Outlook

Illustration Sky Euro | Metzler
Most likely a good year on the financial markets

Edgar Walk, Chief Economist Metzler Asset Management, is optimistic about 2019. According to his assessments, leading indicators show that the upswing in the USA is still intact. Therefore, an important prerequisite for the global economy to remain on the growth path is fulfilled. In this climate, Walk believes there will be good investment opportunities in emerging economies in 2019, but also on Europe’s equity markets. Investments in Chinese A-shares appear attractive to him in the medium term. Furthermore, Walk considers catastrophic developments to be extremely unlikely for the global economy and financial markets in 2019.

Read more about Walk’s predictions in his market:update Annual Outlook for 2019.

Edgar Walk, Chefsvolkswirt Metzler Asset Management
Edgar Walk

joined Metzler in 2000. As Chief Economist in the Asset Management division, he is responsible for formulating our global economic outlook. Due to his close cooperation with the portfolio management, he focuses on capital market themes as well as on global economic analyses. Mr. Walk holds a master’s degree in economics from the University of Tübingen in Germany and spent a semester at the University of Doshisha in Kyoto, Japan. In addition, he completed the program “Advanced Studies in International Economic Policy Research“ at the Institute of World Economy in Kiel, Germany.