Invesco Canada blog

Insights, commentary and investing expertise

Fed cut meets market expectations, but future cuts are in doubt


September 20, 2019

Subject | Invesco | Macro views

The U.S. Federal Reserve (Fed) cut interest rates by 25 basis points Wednesday to a range between 1.75% and 2%, as widely expected by markets. However, the Fed’s economic projections showed that the median Federal Open Market Committee (FOMC) member does not expect to cut rates again this year, marking potential disagreement among FOMC members and with markets; the bond market is currently pricing an additional rate cut this year and some FOMC members have expressed interest in future cuts.

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Could ‘helicopter money’ help Europe’s economy take flight?


Global Market Strategist, Invesco Ltd.
September 16, 2019

Subject | Macro views

Last week, the European Central Bank (ECB) decided to take a significant step away from normalization and toward more accommodation. It cut the deposit facility rate by 0.1% to a level of -0.5% (the first time the deposit rate has changed since 2016) and announced a re-ignition of quantitative easing (QE).1

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Is a U.S. recession inevitable?


September 10, 2019

Subject | Macro views

The yield curve has been a constant topic of conversation among investors since mid-August, when the 2-year/10-year Treasury curve briefly inverted and launched furious speculation that a recession may be around the corner.  The same holds true among Invesco’s market strategists, who have been debating what an inverted yield curve means and whether a recession is indeed inevitable.

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Uncertainty casts its shadow over the U.S., Europe, and China

This week, we are going to take a deeper dive into the issues currently facing the U.S., Europe, and China. Guiding us through this “regional roundup” are three of Invesco’s Global Market Strategists who are on the ground in New York, London and Hong Kong. While the details differ in each region, the biggest commonality they report is the heavy shadow of uncertainty that continues to linger over markets.

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Five things to watch in September


Global Market Strategist, Invesco Ltd.
September 3, 2019

Subject | Macro views

August is supposed to be a slow, relaxing month – but this August was anything but that for investors. Trade frictions were on the rise for much of the month. The U.S. Treasury yield curve inverted several times, causing jitters for investors concerned that a U.S. recession is imminent. Of course, stock volatility rose, with the CBOE Volatility Index (VIX) hitting its highest level of 2019 in the month of August.1 Instead of enjoying calm, sunny days, markets were rocked last month by interviews with Federal Open Market Committee (FOMC) members at Jackson Hole, tweets from President Donald Trump, and geopolitical events in the U.K., Italy and India – to name just a few.

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