Natixis Asset Management

There were bouts of volatility in financial markets this summer: collapse in Chinese equities, depreciation of the yuan dragging down emerging currencies, drastic fluctuations in equity markets in developed countries, collapse in commodity prices, etc. How can we interpret this turmoil and what is its impact on our asset allocation?

For once the ECB surprised markets on the upside at its 22 January meeting. Despite numerous press leaks, the measures announced widely exceeded the expectations of market participants … and of governments. This new monetary reality should provide support for European equity markets in the coming months.

According to Natixis Global Asset Management, while institutional investors are optimistic about equities in 2015, their outlook is tempered by market risks beyond their control and unknown liability risks ahead, particularly those linked to increased longevity...

According to Raphaël Gallardo, Strategist – Investment and client solutions at Natixis Asset Management, the fall in the oil price is attributable to a real phenomenon (the downward revision in global energy demand), but which he considers to be amplified by macro-financial interest-rate issues (steepening US real rates) and foreign exchange factors (dollar rally).

Those who were hoping for a shift in tone from the Federal Reserve regarding an imminent rate hike, encouraged by increasing signs of a recovery in the US, will be disappointed. The Fed has reiterated its concerns over the dynamics of the economy.