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    Multi Asset chart of the week

    Multi Asset chart of the week

    12 June 2024 Multi-asset
    Week to 14 June 2024

    2024: A pivotal year for elections

    Shantanu Tandon, Portfolio Manager at Insight Investment, said: “2024 is set be a pivotal year for elections with over 60 countries and regions covering more than 4 billion people scheduled to hold elections. European Union elections have seen a swing towards right wing parties. France has been added to the list, announcing surprise parliamentary elections to be held over June and July. This has contributed to additional volatility in European equity markets but there has been limited spillover to other regions for now.  We retain our procyclical outlook for now as the macro backdrop remains broadly supportive.†”

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    Source: Bloomberg, IMF. As at 11 June 2024. Chart shows elections held or expected in 2024 with select countries and regions highlighted.
    Week to 07 June 2024

    Is it time for the ECB to begin cutting rates?

    Steve Waddington, Co-Deputy Head of Multi-Asset Strategy at Insight Investment, said: “Investors are currently pricing a 98% likelihood of the ECB cutting rates by 25 basis points at their meeting on Thursday. This would mark the end of the most aggressive hiking cycle in the ECB’s history, and its first cut since 2019. With headline CPI decelerating from a double-digit rate to 2.6% at the end of May, we believe a gradual easing in policy should act to support risk assets over the rest of 2024. Given this view we continue to maintain a procyclical investment position with an equity weighting above our long-term average levels.†”

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    Source: Insight Investment & Bloomberg as at 4 June 2024.
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