Quarterly Outlook - Q2 2015: Much Ado About Zero...

Please find the current instalment of the Macro Quarterly Outlook attached on the left. The paper is jointly authored by Roubini Global Economics, a leading independent global research house, and ETF Securities Research.

The paper deal with the following topics:

  • Steep declines in market interest rates—to zero or below in several instances—has accompanied monetary easing across 20 countries, even as the Fed prepares to hike. We think this is part of the new operating environment.
     
  • Meanwhile, pessimism about global growth worsened last quarter, but our views are more upbeat as Europe and Asia benefit from low oil, low rates and weaker FX.
     
  • A cyclical up-tick in Europe and Asia will bode well for European and Asian equities while providing a tailwind for industrial commodities. The US Dollar’s rally appears stretched and we look for a short-term correction.