Andrew Milligan, Asia Scotland Institute Board Member, Independent Economist & Investment Consultant, discusses ‘The Divergence Between East and West’ in a new podcast episode.
Since the start of the year, anyone who has looked at financial markets in the United States of America or Europe must have noticed how government bond yields have jumped much higher. Central banks have signalled more aggressively that they need to take away the proverbial punch bowl from the party. As a consequence, the expectation of higher interest rates has put Western equity markets under pressure. Most emerging market central banks continue to follow the line set by the US Federal Reserve, with aggressive rate hikes seen in Brazil and Russia for example. However, there are some interesting divergences – two of the largest Asian economies are seeing the situation in a different way.
ures. Risks and opportunities as ever for investors to consider. Much to examine in coming months!