What’s top of investors’ minds this week?

Last week we argued that the conflict in Iran was unlikely to disrupt oil markets. The Brent crude price has subsequently fallen from USD78/bbl to USD68/bbl. This helped the S&P 500 to rally to a new record high, causing it to be up 5% for the year. The ample liquidity conditions and low levels of institutional positioning we discussed remain in place and seem likely to push equities higher into peak US earnings season from July 14. Consensus expectations for S&P 500 earnings growth of 4% in Q2, down from 12% in Q1, seem slightly low to us so we see room for positive earnings surprises to support higher US equity levels in the short term. If US equities do rally, they are likely to support further gains in Asian equities.

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Vis Nayar

Vis Nayar is the Chief Investment Officer and a member of the Executive Management Committee at Eastspring Investments. Vis spearheads Eastspring’s investment platform encompassing equities, fixed income, multi asset and quantitative solutions, and oversees investment offerings across markets.

Information provided is general information and is for educational purposes only, and does not include, or constitute as, financial product advice.