PRESS ROOM
The key drivers for equities beyond the rout caused by rising yields
Thursday 25th March '21
In recent weeks, the sharp increase in long dated US Treasury yields has caused a pullback in equity markets across the board. Technology stocks and emerging markets have been hit particularly hard. Going forward, the outlook for equities for the remaining of the year rests heavily on the following forces: 1. Fiscal stimulus injection in the US, 2. Ongoing accommodative rhetoric from the US Federal Reserve (Fed), and 3. Cyclical optimism which combines hopes of a vaccine-led end to the pandemic and pent-up demand from consumers lifting economies and corporate earnings.