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 podcast (in French only)

Topic of the week: China: remember August 2015

  • The third plenum of the Chinese Communist Party failed to address the causes of persistent imbalances in the Chinese economy;
  • The supply-centric model has been reaffirmed with priorities set to make supply chains more self-reliant and enhance investments in advanced manufacturing;
  • Domestic demand remains weak whilst central government transfers are needed to make up for local governments’ revenue shortfall;
  • The PBoC keeps easing monetary policy adding to downward pressure on the Chinese yuan;
  • Devaluation of the yuan could be the end game.

Market review: Markets need a Fed nod

  • Fed, BoE and BoJ to hold important meetings this week;
  • US growth surprises on the upside (2.8% in 2Q) but most surveys are downbeat;
  • Curve steepening resumes amid tensions on euro sovereign debt markets;
  • US mega-cap earnings disappoint.

Chart of the week

chart of the week

French business confidence dropped by 5.2 points in July to stand at 93.9. It is at its lowest level since February 2021. Business confidence had been hovering near its long-term average since May 2023, signaling a lackluster but resilient growth amidst various shocks. However, the drop is traceable to political uncertainty. The survey was conducted from June 27 to July 22, therefore incorporating the results of the elections. The lack of visibility on the economic policy has led business leaders to adopt a wait-and-see approach. The deterioration in activity and demand prospects is clear. All sectors are affected, most notably services and retail trade. The employment index also fell, dropping by 3.5 points to 96.2, well below the long-term average of 100, and at its lowest level since April 2021.

Figure of the week

18

Each Olympic medal will contain 18 grams of puddled iron from the Eiffel tower.

MyStratWeekly : Market views and strategy

Download MyStratWeekly – July 30th 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

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.
12/03/2024
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.
11/26/2024
Reserved for pros
Reading time : 15 min.
INSIGHTS MARKETS
Each month we share the conclusions from the monthly strategy investment committee which provides a summary of Ostrum’s views on the economy, strategy and markets.
11/19/2024
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