SEB: Investment Outlook: Higher growth and inflation rates
(Thomson Reuters ONE) -
Signs of higher growth and inflation rates, along with hopes of support from
fiscal policy initiatives, will form a solid basis for rising corporate
earnings.
So far the stock market has interpreted these developments in a positive way.
The fixed income market is affected differently, since rising yields hurt
returns on bonds with longer maturities. For corporate bonds, this may be offset
by the fact that credit spreads are favoured by prosperous businesses. If this
stronger trend persists, we should also have reached the peak of aggressive
central bank support. This will affect the future performance of financial asset
markets.
"We are finally receiving long-awaited signals that we have bounced back from
the recent economic slump, with its mediocre growth rate and worryingly low
inflation rate," says Fredrik Öberg, Chief Investment Officer, SEB Private
Banking.
Last autumn's upturn in various sentiment indicators is about to be transformed
into better economic growth. The upturn is occurring in a number of countries.
We are adjusting our growth forecasts for both the euro zone and China. The
upturn is most pronounced in the United States. Aside from expectations of more
growth-promoting policies, the acceleration is being driven by several factors.
The oil price recovery has stabilised portions of the financial markets and
eased pressure on producer countries. Meanwhile prices are low enough to help
sustain growth in net oil importing countries. We are also now seeing resource
utilisation rising to levels that will trigger an increase in capital spending
and generate some wage inflation, especially in the US. Fears of a recession
and/or deflation can now be removed from the hazard list, which in itself is
contributing to a more positive mood. Partly due to the generally brighter
outlook, households will probably shift from increased savings to somewhat
higher consumption. Private consumption is still driving global growth.
The February 2017 issue of SEB's Investment Outlook report includes two theme
articles: The first provides an update on the potential for fixed income
investing in a continued low interest rate environment, but one where we are now
seeing an upward trend in interest rates from historical lows. The second theme
article surveys developments in the fields of sustainability and ethics and how
these concepts are being integrated into the world of investing. The report can
be read in its entirety at www.sebgroup.se
For further information, please contact Press contact
Fredrik Öberg, Chief Investment Officer Frank Hojem, Press Officer
+46 8 763 63 04 +46 70 763 99 47
fredrik.oberg(at)seb.se frank.hojem(at)seb.se
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SEB is a leading Nordic financial services group with a strong belief that
entrepreneurial minds and innovative companies are key in creating a better
world. SEB takes a long term perspective and supports its customers in good
times and bad. In Sweden and the Baltic countries, SEB offers financial
advice and a wide range of financial services. In Denmark, Finland, Norway and
Germany the bank's operations have a strong focus on corporate and investment
banking based on a full-service offering to corporate and institutional
clients. The international nature of SEB's business is reflected in its
presence in some 20 countries worldwide. At 31 December 2016, the Group's
total assets amounted to SEK 2,621 billion while its assets under management
totalled SEK 1,781 billion. The Group has around 15,300 employees. Read more
about SEB at www.sebgroup.com
Press release (PDF):
http://hugin.info/1208/R/2078426/782261.pdf
Investment Outlook - February 2017:
http://hugin.info/1208/R/2078426/782262.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: SEB via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 14.02.2017 - 11:00 Uhr
Sprache: Deutsch
News-ID 523893
Anzahl Zeichen: 4636
contact information:
Town:
STOCKHOLM
Kategorie:
Business News
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