According to Deutsche, Malaysia is stepping into 2016 with increasing economic challenges. Yet, despite heightened sensitivity to adverse external conditions, Deutsche is confident that Malaysia’s macro-economic fundamentals are likely to remain intact in 2016.
China's economy has had a tough year in 2015. The challenge in 2015 was to some extent due to a large fiscal contraction caused by decline in lands sales revenue in H1. Land auctions have rebounded strongly since mid-2015 because of policy easing.
The market is usually less active during the final month of the year as the market prepares to close their portfolios for the year and fund managers do some window dressing. However, if the past three weeks were any indication of what to expect for 2016, we are about to be in for a wild ride in 2016 in the forex market.
2016 will be the year of the emerging markets, according to Goldman Sachs and famed investor Mark Mobius. After three years of disappointment, Goldman Sachs believes that emerging markets are about to turn the corner.
The Singapore market's implied long-term growth has revisited negative territory since October 2015. A number of sectors including banking, capital goods and property development are currently trading below their long-term averages. UBS believes that this is due to weaker ROEs and EPS growth prospects.
The name Peter Thiel should ring a bell; Thiel, co-founder of PayPal and now a prominent venture capitalist, was the first outsider to invest in Facebook, and he also manages Founders Fund's $2 billion in assets. Thiel's bestselling book, "Zero to One", is one of the top recommended books for budding entrepreneurs.
Heading into 2016, the slowdown emerging from China and the weakness in the ASEAN region appears likely to continue to weigh down on corporate earnings and stock valuations. That being said, CIMB believes that the negative sentiments have been priced into current valuations.
The International Monetary Fund (IMF) executive board recently announced to include Yuan in Special Drawing Rights (SDR) basket (finally!). This will take effect from 1 October 2016. While China’s capital account has not been fully liberalised, the IMF “determined Yuan to be freely usable”, thus meeting the second criterion for SDR basket inclusion.
The past two weeks has been an eventful period for Wall Street and global markets. Euro shockingly strengthened despite Quantitative Easing (QE) efforts from the European Central Bank (ECB) while the Fed raised interest rates for the first time since a decade ago. This was a pretty exciting end to the year 2015 as markets rallied following the end of exotic monetary policy from the Fed.
If 2015 was any indication of commodities’ performance in 2016, commodities will continue to slump in 2016, that’s what Goldman thinks. China, which gobbled up raw materials everywhere from Australia to Chile a...