News & Research

Investors are right to focus on the US debt ceiling showdown these days, instead of key upcoming economic releases including the May jobs report. While a US default would unleash global economic Armageddon, markets have been relatively calm so far.

Olivier d’Assier, head of Asia Pacific applied research at Qontigo, discusses the outlook for stock markets in Japan and the US. He speaks with Shery Ahn and Haidi Stroud-Watts on “Bloomberg Daybreak: Asia.”

“They are large companies with well-diversified revenue bases, with no debt, with profitable income statements, with strong balance sheets,” said Olivier d’Assier, head of APAC applied research at Qontigo, in a phone interview on Friday.

Is the US heading towards another debt-ceiling crisis? Using Qontigo’s Axioma Risk tools, we take the 2011 precedent and run a series of stress tests to analyze how negatively investment portfolios could react this time.

Qontigo Global Head of Applied Research Melissa Brown says the market is being lead by a few large technology stocks which is “unsustainable”.

Qontigo Global Head of Applied Research Melissa Brown explains what investors are waiting for: the “show me the money” moment, before putting more money to work in the markets.

In a discussion about the current state of the U.S. markets, Managing Director of Applied Research Melissa Brown shed light on the disproportionate dominance of large tech stocks.

The strong April jobs report released Friday could change the view that the economy is facing an imminent recession and might lead to more institutional investor uncertainties in both the equity and bond markets, said Melissa R. Brown, Global Head of Applied Research at Qontigo, a Deutsche Boerse-owned financial analytics and index provider.

“Today’s jobs report could change the view that a recession is imminent and lead to even more investor uncertainty, in both equity and bond markets. Strong job gains and low unemployment may signal that inflation is not over just yet. This is also on top of decent Q1 earnings. That continued uncertainty could translate into more negative sentiment and higher volatility, especially as we won’t hear from the Fed again for several weeks.” – Melissa Brown, Managing Director of Applied Research at Qontigo

While the US banking system steadied in April after the traumas of March, investor sentiment remained under a cloud, but still showed some recovery last month. So with the recent combination of declining markets and a recovering sentiment, was there a shift in investment strategies? On Money in the Market, Hongbin Jeong speaks to Olivier d’Assier, Head of Applied Research, APAC, Qontigo to find out more.

The ROOF portfolios use the sector ROOF Scores to construct sentiment-tracking portfolios that capture the returns from a bullish or bearish strategy. The Risk-On and Risk-Off portfolios are constructed from the holdings of the STOXX® Europe 600 index and are rebalanced monthly (at month-end) using the then-current sector ROOF scores for the European market.

The ROOF portfolios use the sector ROOF Scores to construct sentiment-tracking portfolios designed to capture the returns from the implementation of a bullish or bearish strategy. The Risk-On and Risk-Off portfolios are constructed from the holdings of the STOXX USA 500 parent index and are rebalanced monthly (at month-end) using the then-current sector ROOF scores for the US market.