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MSCI's world stock index (.MIWO00000PUS) is set to close the month up around 9%, its best performance since November 2020, when markets cheered the arrival of COVID-19 vaccines. Global bond prices have soared, with an ICE BofA index of global investment-grade bonds in major markets set to return 3.4% in November, the best month on record going back to 1997. Global growth stocks in high-tech sectors are up 11% (.dMIWO0000GNUS) while value stocks, which are mainly in cyclical industries and offer high dividends, have gained 6.5% (.dMIWO0000VNUS). And a cloudier outlook for stocks suggests a divergence could open up between again between stocks and bonds. The broader global index is set to return 1.6% for the year.
Persons: Joshua Roberts, That's, bode, Altaf Kassam, Wall, We've, Guy Miller, Joost Van Leenders, Van Lanschot Kempen, Van Leenders, Kassam, Naomi Rovnick, Yoruk Bahceli, Dhara Ranasinghe, Christina Fincher Organizations: Federal Reserve, REUTERS, U.S . Federal Reserve, European Central Bank, State Street Global Advisors, Traders, Fed, Insurance Group, Equity, Reuters Graphics Reuters, Treasury, Thomson Locations: Washington , U.S, COVID, U.S
Stock Market Today: Dow Futures Edge Up; Arm Rallies Premarket
  + stars: | 2023-09-15 | by ( ) www.wsj.com   time to read: +1 min
Shares of chip designer Arm continued to rise in offhours trading , last up 7% after jumping 25% in its stock-market debut Thursday. Stock futures edged up as Chinese data pointed to stronger-than-expected economic activity and investors awaited U.S. consumer-sentiment data. The Chinese central bank cut a short-term lending rate, in another move to support the country’s recovery. Contracts linked to the S&P 500 and the Dow rose crept higher, while Nasdaq-100 futures were flat. German and Italian 10-year yields rose—in a reversal of Thursday's reaction to the European Central Bank's interest-rate hike, according to Joost van Leenders, investment strategist at Van Lanschot Kempen.
Persons: Seng, Oil, Joost van Leenders, Van Lanschot Organizations: Nasdaq, Nikkei, Brent, Treasury Locations: China, U.S, Europe, Michigan
Both hiked interest rates a quarter point - but only the ECB said more was to come. Without committing to it, the Fed signalled a pause in its 13-month, five percentage point tightening campaign. Money markets do partly agree with Lagarde - seeing one more quarter point rate rise in the pipeline. They now see the so-called terminal ECB rate at 3.5% in September - still a chunky 175 bps below peak Fed rates if you assume that at 5.25%, those have now reached the end of the line. "The extent of policy tightening delivered by the ECB to date is already sufficient to cause a recession," said Fidelity International's Anna Stupnytska.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailRecession in Europe and U.S. still very possible, portfolio manager saysJoost van Leenders, senior portfolio manager at Kempen Capital Management, discusses the International Monetary Fund's upgraded forecast for growth and the outlook for monetary policy.
Reuters Graphics3/ RE-EMERGING MARKETSWhisper it, but the emerging markets (EM) bulls are back after 2022 delivered some of the biggest losses on record. Credit Suisse particularly likes hard currency debt and DoubleLine's Jeffrey Gundlach, AKA the "bond king", has EM stocks as his top pick. Economists polled by Reuters expect headline U.S. inflation to decelerate to 3.1% by the end of 2023. Valentine Ainouz, fixed income strategist at the Amundi Institute, predicts the 10-year U.S. Treasury yield will end 2023 at 3.5% from around 3.88% currently. Reuters Graphics5/ EQUITIES: SELL NOW, BUY LATEREquity investors hope a V-shaped year for the global economy will see stocks end it comfortably higher.
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