Will Bonds Kill Equities?

In this note Ewen Stewart from Walbrook Economics published last week Ewen Stewart assesses the outlook for the yield curve in the US and Europe and the subsequent impact on equities. While US and European Sovereign yields have been diverging, global equity markets generally take their cue from Wall Street and have reacted negatively. Stewart is relatively sanguine about the pace of any further US bond yield rises and concludes that they are unlikely to be matched by significantly higher yields in UK Gilts, or Eurozone sovereigns. Bottom line, Stewart believes that the recent equity market correction is an over-reaction and would use as an opportunity to but UK/European equities. Click below to contact Walbrook directly to request trial access to read this piece.