Invesco EMEA

For professional investors only. Stocks plunged like a synchronized diver and rebounded like a basketball star, with twists and turns that would make a gold-medal gymnast proud. The potential for more volatility isn’t over, but Kristina Hooper, our Chief Global Market Strategist, believes the global market sell-off was an overreaction, and she expects central banks to tread carefully to avoid triggering any more market jitters. Read more.

What’s the journey like from Olympic rowing champion to a sales manager in financial services? 🎖️Alan Campbell, Sales Manager, EMEA Digital Distribution, spoke to Citywire Selector about winning a bronze medal in the 2012 Olympics in London and the skills he believes are the winning formula for success – skills he shares with three other Olympians who are also EMEA sales account managers at Invesco: Jack Beaumont was silver medallist in Tokyo in the men’s quadruple sculls; Fiona Gammond was a member of the women’s rowing eight in Tokyo; and Jade Uru was an oarsman in the men’s quadruple sculls at Rio. Read more about Alan’s journey from the Olympics to Invesco here: https://lnkd.in/efB4urkf

In the wake of Monday’s global market sell-off, it’s important to remember that market corrections are not uncommon. The question is whether something larger is happening – i.e., a recession. And in Kristina Hooper ’s view, markets are overly worried about a US recession. While she does believe that the Federal Reserve has increased recession risks by not cutting rates in July, she still believes the US job market is in relatively good shape and employers appear reluctant to cut employees. Her base case is that it is not too late for the Fed to begin to cut — if the Fed does start to ease in September, it will likely be able to avoid a recession, and the US economy would likely experience a re-acceleration in growth in late 2024/early 2025. If you are a professional investor, find out more.

At Invesco EMEA, we are pleased to announce our commitment as a signatory to Ireland's Women in Finance Charter. The launch the second Annual Report of the Charter by Minister for Financial Services Neale Richmond is an important milestone and highlights the significant progress that has been made since it was established. We are dedicated to gender diversity at all levels of our business. We are proud to be one of 91 signatories to Ireland’s Women in Finance Charter, reaffirming our commitment to increase women’s participation in our company. #IrelandWIF

For professional investors only. What's in this week's 'In the Know' newsletter? Kristina Hooper explores the market impact of President Biden's withdrawal, likely heightening short-term volatility. Invesco experts Paul Jackson and András Vig review global debt trends in this month's issue of Uncommon Truths, noting a pause in the decline of debt-to-GDP ratios. Additionally, our twelfth Global Sovereign Asset Management Study examines how sovereign investors are adapting to shifts in private credit, emerging markets, and energy transition, based on data from 140 institutions representing USD 22 trillion.

For professional investors only. This week will be a busy one for central bank meetings, with the Federal Reserve, Bank of Japan, and Bank of England all on the schedule. Chief Global Market Strategist Kristina Hooper shares her thoughts: • Kristina believes the Bank of England will join other major central banks by beginning to cut rates. The new Labour government has indicated that they have inherited some serious fiscal challenges that will result in reduced fiscal spending and the potential for tax increases. • Similar to US inflation, Canadian inflation has some sticky components such as elevated shelter inflation; however, that did not prevent the Bank of Canada from cutting last week and should no longer be an obstacle for the Fed, in Kristina's view. • That said, the Fed is unlikely to cut this week, Kristina says. But in her view a cut would be the right thing to do as US monetary policy is far too restrictive given the progress made on disinflation and the state of the economy.

US President Joe Biden’s withdrawal from the election race has created turmoil — and that’s expected to ramp up short-term market volatility, says Chief Global Market Strategist Kristina Hooper. But there are a number of other issues she’s watching as well that have implications for investors. • She’s staying focused on next week’s Federal Reserve (Fed) meeting, as she believes the Fed matters a lot more to markets. While few expect a rate cut at this meeting, probabilities could increase following the release of the Personal Consumption Expenditures report on Friday. • She’s watching the results of earnings season for signs that market performance may be broadening from the domination of the “Magnificent 7” stocks. A broadening in participation when it comes to earnings growth would make this rotation sustainable, in her view. • China’s Third Plenum ended last week. And with it came a message that China is focused on embracing technological innovation and increasing reforms.

We've just published our twelfth annual Global Sovereign Asset Management Study - if you're a professional investor download now to explore its 5 key themes. https://lnkd.in/er8xzKnX

For professional investors. Capital at risk. Economies, markets and companies have displayed a level of resilience over the last couple of years, reflected by tight credit spreads and low default rates. Tom Moore, Co-head of IFI Europe, explains how this impacts opportunities in high yield and investment grade. Explore more from insights from Invesco experts in our midyear outlook webinar by watching on-demand: https://lnkd.in/eDf33sMB

For professional investors only. Last week, more data was released indicating greater disinflationary progress in the US. Chief Global Market Strategist Kristina Hooper believes the Federal Reserve will cut rates this quarter, and she sees room for more than one cut in 2024. Here's what else Kristina covers in her latest #WeeklyMarketCompass. • While companies have just started to report earnings, Kristina thinks this will be a rather positive earnings season in general. S&P 500 companies are forecasted to deliver earnings growth of 9.3% for the second quarter – which would be the highest year-over-year earnings growth rate reported since the first quarter of 2022. • The new UK Labour government announced the launch of a multi-billion pound national wealth fund whose objective is to grow the UK economy through the support of green investment and infrastructure development. • China’s Third Plenum kicks off this week. Various reforms are likely at the top of the agenda, and Kristina will be particularly interested in property-related policies, which will be critically important as the sector continues to address lower prices and rising inventory.