27 Apr 2012: SH Investment Outlook – April 2012

apr 27, 2012

Minute Read

The latest market commentary and outlook from Schroders Private Bank…

Robert Farago, Head of Asset Allocation, Schroders Private Bank

For professional investors and advisers only.This document is not suitable for retail

Economic activity surprised on the upside in the first quarter, while inflation was broadly in line with expectations. The European Central Bank’s long-term financing operation to provide liquidity to the banking sector more than doubled in size, helping to lower government bond yields in Italy and Spain. There was additional quantitative easing by the Bank of England and also by the Bank of Japan, who announced a 1% inflation target. This sent the yen sharply lower. This provided a positive backdrop for equity markets, which enjoyed strong gains. Corporate credit and emerging market bonds also rallied while government bonds in the UK and US produced modestly negative returns. The combination of a growing global economy and rising political tensions surrounding
Iran’s nuclear ambitions sent oil prices higher.

Disclaimer:
The views and opinions contained herein are those of the Azad Zangana, European Economist and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds.

For professional investors and advisers only.This document is not suitable for retail clients.

This document is intended to be for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Schroder Investment Management Ltd (Schroders) does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. This does not exclude or restrict any duty or liability that Schroders has to its customers under the Financial Services and Markets Act 2000 (as amended from time to time) or any other regulatory system. Schroders has expressed its own views and opinions in this document and these may change. Reliance should not be placed on the views and information in the document when taking individual investment and/or strategic decisions. Issued by Schroder Investment Management Limited, 31 Gresham Street, London EC2V 7QA, which is authorised and regulated by the Financial Services Authority. For your security, communications may be taped or monitored.

Source: ETFWorld – Schroders

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