The review includes an analysis of key economic indicators, monetary policy, raw materials markets, and stocks, bonds and currency markets.
“Key assets classes have shown positive dynamics in March. To a large extent it was driven by an improvement in investor confidence, who adapted to the new circumstances in the economy. This is one more positive indicator – the fall in correlation between oil prices and market movements,” – says RAM expert Yury Moskaliuk.
The RAM experts note that in the current climate of record low interest rates and moderate growth of corporate profits, securities in companies from developing sectors of the economy are the most attractive. One should make particular mention of China – according to the approved development plan for the next five years, economic growth of the country will amount to 6.5%.
Prices of raw materials continue to recover. However, despite their longterm growth being ensured by fundamental factors, experts warn of short-term volatility, related to correction of their amassed reserves.
At the same time, the European economy continues its slow but steady growth, due to the stable consumer sector and the stimulation policy of the ECB. Moreover, because of the continuous low inflation (lower than 2013 ECB targets), in March the European Central Bank declared further strengthening of monetary incentives.
As for the USA, recent macroeconomic data confirms the stability of its labor market. There are hopes also for the rehabilitation of the manufacturing sector. However the Fed so far limits its comments to careful statements about uncertainty in the world economy.
The RAM review and latest expert comments can be read here.
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