What does the global slowdown mean for financial markets? – Danske Bank
|Thomas Harr, PhD, Global Head of FI&C Research, Danske Bank, offers his thoughts on the global slowdown and its likely impact on the financial markets, in its latest research report.
Key Quotes:
“For some time I have held the view that the USD will do well due to carry and US outperformance.
The trade war itself should be US dollar-positive, but if at some point it triggers a response from the Fed, I believe USD strength will be over, particularly versus cyclical, risk-sensitive currencies such as the NOK, AUD and NZD.
The markets are pricing central banks very dovishly and inflation expectations in the US and the Eurozone are at very depressed levels. I view the current dovish pricing of the central banks and inflation expectations as fair given the weakening global outlook and downside risks.
I expect US and core-euro interest rates to remain at current low levels for the time being, with the risk tilted to the downside for US rates.
Finally, I expect global equity markets to head lower given the weakening global outlook. “
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.