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Research from Lyxor Managed Account Platform - August 2015

11/08/2015

Strong start in August for CTAs and Global Macro

A fairly heavy load of economic data was released last week. On balance they were positive in DM but remained on the soft side in EM. The divergence between DM vs.EM continued to widen. This kept a strong downward pressure on global trade related assets, starting with commodities. The energy space continued to bleed with concerns rapidly building up in US credit markets and broad weakness in breakevens. In contrast, it supported reflation zones which are benefiting from lower oil prices, weaker currency and acceptable yields. The earning season is well advanced. Europe and Japan have delivered healthy results, unlike the US which is still digesting a poor Q2 EPS season. Of note, the Greek exchange has reopened after 5 weeks of closure and the MPC is delaying its rate cycle.

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