A company’s revenues do not change because it enters an index. Neither do its factories, employees, intellectual property or debt. Yet the investment environment surrounding its shares can change considerably.
For much of the past decade, commentary on London has drifted between two extremes. One side argues the city is losing its status as a global wealth hub; the other insists its position is largely unchanged. The reality is more interesting than either view.
While US interest rate reductions may have been delayed, we will likely see some movement before the end of 2024. This has created significant interest in the traditional bond market, considering government and company issues, which has filtered into emerging market bonds. While there are additional risks associated with emerging markets, these risks are potentially offset by increased returns.
As the tension continues to mount in the Middle East, with Israel launching what many view a token gesture attack on Iran, the oil price has remained surprisingly constant. In the past, even the slightest hint of conflict in the Middle East pushed prices well beyond $100 a barrel.
Amid the Covid pandemic, emerging market borrowing costs went through the roof, investors sat on the sidelines, and many of these economies fell into distress. Only recently have investors begun to reconsider emerging market bonds as expectations of the US, UK and other major economies reducing their interest rates begin to reduce the pressure. So, what is happening with emerging market bonds and is this the beginning of a concerted recovery?
While there has been much focus on the Hong Kong-Shanghai Stock Connect program, there is a similar arrangementbetween Shanghai and London. In a move which went live in 2019, there is now a solid relationship between the London stock market and its Chinese counterparts. Consequently, trade execution in major Chinese companies and, just as importantly, clearing services have never been easier. So how does the Shanghai-London Stock Connect system work?
Clearing and custody services are integral to the investment process, linking trade execution and settlement. The fact that many clients are unaware of the complexity of these services epitomises our often unseen work and investment in these areas.
Whether you are looking at short-term trading or taking a longer-term approach, there is a famous saying amongstinvestors, “the trend is your friend”. So what does this mean, and how can it impact your trading strategy?
The FCA’s collaboration agreement with the US Commodity Futures Trading Commission (CFTC) announced last week is a good signal for the UK’s fintech sector.