Paul O’Connor, Head of the UK-based Multi-Asset Team, considers the prospects for financial markets over the next few months, as investors contend with market uncertainty around central bank hawkishness, the war in Ukraine and lingering Chinese concerns.
The challenge for central banks has grown more complicated with volatility in bond markets and mounting inflationary pressures. Investors face a similar balancing act in navigating the central bank policy divergence that is set to characterise 2022 and beyond.
The inflation narrative in Japan is shifting to focus on upside risk. Portfolio manager Ales Koutny considers whether Japan could join other developed market peers in the exit from accommodative policy.