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Market Analysis

  • ASML shares – Buy on weakness

    ASML was always a top holding in the Calamatta Cuschieri Euro Equity Fund and we continue to believe in the long-term story of the group. We have a €200 Price Target on the Stock. Shares of ASML are up 200% over a period of 5-years. ASML does not...

  • Weekly update dominated by tariff threats

    Weekly update dominated by tariff threats

    Share markets continue to be mixed. US shares were mostly flat last week and negative this week, with strong data offset by worries about a more hawkish US Federal Reserve (Fed) and a potential trade war with China. The euro main equity benchmark...

  • To hedge or not to hedge?

    To hedge or not to hedge?

    2018 has been characterised by a number of political and economic risks which have impacted capital markets negatively. From the threat of trade wars, to divided European governments, to shifting economic policy by central banks; these are just a...

  • Credit markets weaken heading into summer months

    Credit markets weaken heading into summer months

    May turned out to be a negative month for Malta Government Stocks as yields rose sharply, with the CC Malta Government Stock Index (Total Gross Return) registering a decline of 0.56%. This is reflective of the fact that yields on Malta Governments...

  • What level of dividend is suitable in the local market?

    What level of dividend is suitable in the local market?

    Recently I was posed a question about what size of dividend would be deemed adequate for potential investors in the local market. Firstly, I would like to tackle the issue of a “local market” that very often is thrown around in discourse as though...

  • Understanding the key drivers of an economy

    Understanding the key drivers of an economy

    Asset managers, economists, analysts and the majority of those working in the financial services sector, and those who have a particular vested interest on the sanity of the global economy, regularly discuss and closely monitor key economic data...

  • The recent exodus from emerging market credit

    The recent exodus from emerging market credit

    To the surprise of many, or of the few, over the past days, those assets which a few days ago were considered to be the winners are now the remarkable losers. I am referring to emerging market (EM) credit that recently was hammered by primarily a...

  • Trump, this time it’s Iran, who is next?

    Trump, this time it’s Iran, who is next?

    It is already old news, Trump has announced that the US will withdraw from the Iran nuclear deal and restore sanctions, is this a game changer from a political, economic and eventual investment perspective? I will start with what will ultimately...

  • April awakening for credit markets

    April awakening for credit markets

    April was a relatively muted month for credit, in terms of economic data releases, insignificant swings in earnings announcements of high yield issuers, whilst the primary market, despite showing some signs of revival, remained tepid. Geopolitical...

  • Official GDP growth forecasts endorsed by fiscal advisory council

    Official GDP growth forecasts endorsed by fiscal advisory council

    The official real gross domestic product (GDP) growth forecasts for 2018 to 2021, respectively amounting to 6.1%, 5.3%, 4.8% and 4.6%, was within Malta’s endorsable range, the Malta Fiscal Advisory Council said. In its assessment of the...

  •  Apple surprises amid smartphone weakness

    Last Tuesday Apple announced financial results for the second quarter of the fiscal year 2018. Apple’s financial year ends in September, which is why the March quarter is the second quarter. The company posted quarterly revenue of $61 billion, or...

  • Credit markets - the importance of active management

    Credit markets - the importance of active management

    The debate at which point of the cycle credit markets are positioned continues to be an important discussion amongst market participants. Indeed, the bull credit market maintained its sustainability primarily through the support of major Central...

  • Investing in European insurance

    Investing in European insurance

    The insurance sector is possibly a good example of how an industry can learn from its mistakes and emerge stronger from a crisis. Following a difficult period in early 2000’s when the sector experienced a near meltdown as high exposure to equities...

  • The relationship between the Fed outlook and the US economy

    The relationship between the Fed outlook and the US economy

    Jerome Powell, the newly appointed Federal Reserve (Fed) Chairman, has already managed to trigger an intra-day upward tick in the US Treasury 10-year following the relatively FOMC’s hawkish Meeting. At the incumbent chairman’s first meeting, the...

  • CoCos-risk and attractiveness

    CoCos-risk and attractiveness

    Many market participants might lack the necessary experience to understand the complexity of the Contingent Convertible (CoCo) asset class. This comes as no surprise when we consider the fact that the first CoCo was issued in 2009 by Lloyds...

  • Trump and the Nafta agreement

    Trump and the Nafta agreement

    The North-American Free Trade Agreement (Nafta) was executed in 1994 between the United States, Mexico and Canada. The agreement specifically relates to the lifting of tariffs (taxes on exports and imports) on all goods traded among the countries...

  • Investing during a sell-off

    Responsible investing is about balance, diversification, liquidity and the long-term. But this investment year is not turning out to be simple to interpret. As investment managers we are being forced to put in one pot exchange rates, economic...

  • Equities bounce after the storm – why?

    Equities bounce after the storm – why?

    Equity markets bounced back last week from their lows. The DAX fell 10.7% from its high and rebounded 2.7%, whereas the S&P 500 fell 10.16% and rebounded 5.82%. Why the bounce? Last Wednesday we got inflation data for January out of the US, which...

  • The low interest rate environment

    The low interest rate environment

    Over the past years, the wave of economic weakness, primarily following the recession way back in 2008, has led major Central Banks to take action by deploying certain measures in an attempt to trigger an economic recovery. To this extent,...

  • Corrections only turn bears in recessions

    Corrections only turn bears in recessions

    Equity markets had a rough month to date as the worries around rising inflation, bond yields and a more aggressive Fed continued to impact. US shares last week fell 5.2%, Eurozone shares fell 5.1%, Japanese shares lost 8.1% and Chinese shares fell...