Read our market review and find out all about our theme of the week in MyStratWeekly and its podcast with our experts Axel Botte, Aline Goupil-Raguénès and Zouhoure Bousbih.

Listen to Axel Botte's and Zouhoure Bousbih's podcast (in French only)

Topic of the week: Will India realize its dream of becoming a developed market by 2047, the year of its independence centenary?

  • India has benefited from the mistrust of China by attracting foreign direct investment (FDI);
  • In 2023, the country contributed at 17.5% to global economic growth;
  • Public investment remains the main driver of Indian growth;
  • To achieve high-income status, India must continue to attract FDI by improving its infrastructures;
  • The development of its domestic sovereign bond market should enable financing at lower costs;
  • Regional stability is also a necessary condition for its economic growth.

Market review: A New Scenario from J. Powell!

  • Bear steepening of the US yield curve;
  • Widening of spreads for peripheral countries due to the return of budgetary risk;
  • Decline in US stock markets, particularly in the technology sector;
  • Low oil prices volatility given rising tensions in the Middle East.

Axel Botte's and Zouhoure Bousbih's podcast

  • Topic of the week: Market news, Fed change of discourse, Mag7 drop;
  • Theme: Will India surpass China?

Chart of the week

savings-from-the-pandemic-%-gdp

Despite the strong monetary tightening, the global economy has shown incredible resilience.

This is explained in part by households' ability to draw on their accumulated savings during the pandemic, particularly in developed countries.

This represented 10% of GDP for the United States and 7% for the Eurozone.

This savings cushion has been depleted in the United States as of Q2 2023 but remains available for other countries mentioned in the chart.

Figure of the week

39 bp of Fed fund rate cuts are now expected by markets, compared to 170 bp, or 6 rate cuts, at the beginning of the year.

MyStratWeekly : Market views and strategy

Download Download MyStratWeekly – April 16th 2024
  • Axel Botte

    Axel Botte

    Head of markets strategy

  • Zouhoure Bousbih

    Zouhoure Bousbih

    Emerging countries strategist

  • Aline Goupil-Raguénès

    Aline Goupil-Raguénès

    Developed countries strategist

Reading time : 5 min.
INSIGHTS MARKETS
The high level of rate volatility raises two key questions. Firstly, volatility normalised gradually as rate policy took over from quantitative easing. Over a long period, the central banks’ grip on bond markets through asset purchase programmes suspended the usual market mechanism determining asset prices.
05/02/2024
Reserved for pros
Podcast
Reading time : 30 min.
NEWS MARKETS
Read our market review and find out all about our theme of the week in MyStratWeekly and its podcast with our experts Axel Botte, Aline Goupil-Raguénès and Zouhoure Bousbih.
04/30/2024
Reserved for pros
Reading time : 15 min.
INSIGHTS MARKETS
Covered bonds are an essential financing instrument for banks in the euro area. ECB monetary tightening affects the covered bond market directly with the unwinding of CBPP3  holdings and indirectly with the TLTRO  repayment (freeing covered bond collateral). Mortgage loans are the main collateral for covered bonds. Housing has been hit by higher rates so that bank lending to households for house purchase shrunk. Covered bond supply should slow reflecting declining lending flows. Covered bond spreads tend to compare favorably to other similarly low-risk asset classes.
04/26/2024
Reserved for pros