News & Research

Gilt curve partially inverts over stagflation fears; Dollar rises as traders revise rates expectations; Stock market recovery reduces portfolio risk.

Investor sentiment continued to improve in all markets we track, except China and global emerging markets, which ended the week flat versus the previous week on geopolitical concerns. Sentiment is now moderately positive in all developed markets, while emerging markets and Asia ex-Japan remain close to neutral, lacking conviction one way or the other.

Investor sentiment continued to recover in the US, Europe and global developed markets, ending the week positive in all three. Sentiment remains negative among investors in global emerging markets, Japan and Asia ex-Japan, with the latter falling back into a bearish mood.

Gulf Arab markets emerge as top performers; Falling factor volatility drives down index risk around the globe; The US dollar remains at strongest level in decades.

Qontigo has partnered with CEPRES, the leader in private market investment technology and data, to develop a suite of private market factor risk models for unique insights into private capital fund risk in multi-asset class portfolios.

As part of the recently announced partnership between CEPRES and Qontigo, we are developing a suite of factor risk models that provide broad coverage of the private market space in Axioma Risk.

Energy remains the best performer despite recent hit; US Info Tech and Consumer Discretionary see a small comeback; Europe keeps its cool

Sentiment continued to recover in all markets we track as the Q2 earnings reporting season is having a positive impact on investors’ mood. The better-than-feared (so far) reports and guidance is lifting sentiment away from fears of a deep recession and towards hope for a mild and short one that could spare corporate profits.

US Treasury curve (partly) inverts over inflation and rate-hike concerns; Higher rates and recession fears boost dollar to euro parity; Flight-to-safety flows reduce portfolio risk.

Factor returns vary widely by region; The average US stock has lagged the benchmark recently; Energy maintains Momentum exposure, but can it last?

Most markets fell and risk increased in Q2 and YTD. US (Large and Small Cap) had the most negative returns, but Australia and Canada experienced the largest increases in predicted volatility (although are still at the low end of the risk spectrum).

Melissa Brown, Qontigo’s Global Head of Applied Research, spoke with Zahra Tayeb of Insider about how aggressive interest rate hikes and rising yields on US Treasuries are changing the market’s bond dynamic, increasing investors’ appetite for fixed income.