Read the latest market commentaries, outlooks and thought leadership from Invesco professionals in Asia and around the world.

Our investment teams provide insights covering markets events, asset classes and investment-related topics effecting our clients.


INVESmart

Nixon Mak, Managing Director, Head of HK Pensions and Solutions Strategist, Asia Pacific at Invesco, shares his views on Hong Kong and global markets.

Latest Materials

Expand all
Collapse allExpand all

Market Outlook - Monthly

June 2019 (covering May 2019)

US

  • The US equity market ended the month in negative territory as it delivered its worst May returns in seven years and second-worst since the 1960s. A re-escalation of trade tensions between the US and China unnerved equity markets.
  • The outlook for the rest of the year is clouded by the threat of a slowing global economy, trade tensions with China and weakening inflation.

Europe (including UK)

  • UK equities moved broadly in line with global equity markets, which came under pressure from renewed US-Sino trade tensions and the fall in the price of Brent Crude oil, which reached a three-month low. The uptrend for European equities this year also came to a halt in May with Italian equities suffering the most.
  • While uncertainty relating to global trade tensions, Brexit and other European political headwinds will likely continue to take their toll in the near term.

Asia Pacific (ex Hong Kong ex China ex Japan)

  • Asian equity markets ended the month lower as trade tensions escalated and concerns surrounding global growth increased. Against this backdrop, there was divergence in market performance with China being amongst the poorer performers while India and Australia outperformed the region.
  • We believe market volatility might linger on in the short term given the recent development on the US-China trade front, but we believe it may create good buying opportunity for investors to position into quality companies. 

Hong Kong and Mainland China (H-shares)

  • Offshore Chinese equities experienced heightened volatility in May, underperformed the broad Asian markets. Trade tension between China and the US escalated after a relatively calm period of negotiations, which surprised the market. 
  • We believe market volatility might rise in the short term given the recent development on the trade front, but we believe it may create good buying opportunity for investors to position into quality companies.

Japan

  • In line with regional markets, the reignition of US-China trade tensions saw Japanese equities end the period lower, surrendering gains made over the first four months of the year.
  • We are carefully monitoring slowing growth in the global economy and re-escalation of trade tensions between the US and China. We also suspect that earnings momentum is likely to bottom out in the second half of 2019 with the healing global economies given China’s stimulus, the turnabouts in the US Federal Reserve and the European Central Bank’s monetary policies.

Fixed Income

  • In May, government bond yields fell sharply. The yield on the 10-year US Treasury fell 38 basis points (bps). The decline in yields was driven by America’s unexpected threat of tariffs against Mexico, which added to existing concerns over trade tensions with China. 
  • Overall core inflation is struggling to find significant headway and global growth slowdown will continue to weigh on any inflation pick up. In terms of policy, the Fed is likely to look through initial noise from negative growth shock but could be forced into cutting rates later in the year. 

Emerging Markets

  • A re-escalation of trade tensions between the US and China unnerved Emerging markets on fears that it could hamper the recovery in global growth. Given their higher sensitivity to global trade, the emerging equity markets fell sharply in May. All sectors finished in negative territory, with consumer discretionary, telecoms and technology being the main laggards.
  • The recent market downturns and US-China trade tensions provided an opportunity to look for attractive bargains created by this sell-off particularly emerging markets in general - for investors with a longer-term time horizon. 

2019 Investment Outlook : 15 asset classes

Each New Year brings the promise of a fresh start-but for investors, it’s important to understand the global dynamics that have brought us to this point. How do yesterday’s elections, monetary policy decisions and geopolitical developments affect tomorrow’s opportunities? Working with our investment teams from across the globe, we've developed this 2019 outlook to provide insights that can help you position your portfolio for the future.
 

2019 Outlook - Global Economy “Global economy expected to grow with low inflation in 2019”

Key takeaways

  • 2018 has been a year of turmoil, but, 2019 promises to be much calmer, in my view.
  • I believe the Federal Reserve should be successful in positioning the US economy for several more years of expansion.
  • Monetary policy invariably dominates fiscal policy in the determination of inflation.

2019 Outlook - Global Markets “Three themes to watch in 2019”

Key takeaways

  • We believe economic growth divergence is likely to continue to some extent.
  • Geopolitical disruption is leading to structural fragmentation.
  • The debt problem is widespread and is becoming more burden some as rates rise.

Disclaimer

The above materials have been prepared only for those persons to whom Invesco has provided it for informational purposes only. It is not an offering of a financial product and is not intended for and should not be distributed to retail clients who are resident in jurisdiction where its distribution is not authorized or is unlawful. Circulation, disclosure, or dissemination of all or any part of the above materials to any person without the consent of Invesco is prohibited.

The above materials may contain statements that are not purely historical in nature but are "forward-looking statements," which are based on certain assumptions of future events. Forward-looking statements are based on information available on the date hereof, and Invesco does not assume any duty to update any forward-looking statement. Actual events may differ from those assumed. There can be no assurance that forward-looking statements, including any projected returns, will materialize or that actual market conditions and/or performance results will not be materially different or worse than those presented.

The information in the above materials has been prepared without taking into account any investor’s investment objectives, financial situation or particular needs. Before acting on the information the investor should consider its appropriateness having regard to their investment objectives, financial situation and needs.

You should note that this information:

  • may contain references to amounts which are not in local currencies;
  • may contain financial information which is not prepared in accordance with the laws or practices of your country of residence;
  • may not address risks associated with investment in foreign currency denominated investments; and
  •  does not address local tax issues.

​All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. Investment involves risk. Please review all financial material carefully before investing. The opinions expressed are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.

The distribution and offering of the above materials in certain jurisdictions may be restricted by law.  Persons into whose possession this marketing material may come are required to inform themselves about and to comply with any relevant restrictions. This does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such an offer or solicitation