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    Multi-asset chart of the week

    Multi Asset chart of the week

    16 September 2025 Multi-asset
    Week to 19 September 2025

    Markets are pricing in quite an aggressive rate cut cycle for the US compared to other developed markets

    Stephanie Chan, CFA, Portfolio Manager, said: “The Fed is expected to cut its policy rate by 25bp on 17 September, its first rate cut since December 2024. Markets are pricing in quite an aggressive rate cut cycle for the Fed compared to other developed market central banks such as the ECB and BoE. Through June 2026, the market has priced in a total of almost 5 cuts from the Fed, while no cuts are fully priced from the ECB and BoE. The BoJ is expected to hike its policy rate at least once by June 2026. These aggressive expectations for the Fed may be vulnerable to a reversal pending upcoming inflation and labour market data releases.”

    Chart of the week 02072025.jpg

    Source: Bloomberg and Insight Investment as at 16 September 2025

    Week to 12 September 2025

    Jobs data shows labour market softening, but increasing CapEx, particularly for AI, could provide a meaningful tailwind for growth

    Steve Waddington, Co-Deputy Head of Multi-Asset Strategy, said: “Friday’s jobs report underscored growing concerns around tepid labour market momentum. But beneath the surface, the macro picture remains more resilient. Last week we highlighted that August PMIs pointed to a modest improvement in business sentiment. This week’s chart highlights a powerful capex cycle — driven by IT and AI adoption — is emerging as a key growth engine. AI-related investment alone is estimated to have added 0.5% to US GDP in H1 2025, offering a potential secular tailwind for global growth.”

    Chart of the week 02072025.jpg

    Source: Bloomberg and Insight Investment as at 08 September 2025

    Week to 05 September 2025

    86% of global GDP reflects accelerating or stabilising growth environments

    Chris Broadley, CFA, Portfolio Manager, said: “Within August’s PMI dataset the incremental move was to a more positive backdrop. The global manufacturing PMI jumped back above 50 (expansionary territory) with a month-on-month improvement from both developed and emerging economies. Our chart of the week highlight’s this shift, with 86% of the world’s GDP in either a state of accelerating growth (expansionary and getting better) or stabilising growth (contractionary but getting better).”

    Chart of the week 02072025.jpg

    Source: Bloomberg and Insight Investment as at 03 September 2025

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