Equities 

Source: All data are sourced from Lion Global Investors and Bloomberg as at 28 February 2023 unless otherwise stated. *All figures stated in US Dollars.

Fixed Income

Source: All data are sourced from Lion Global Investors and Bloomberg as at 28 February 2023 unless otherwise stated. *All figures stated in US Dollars.

Macro & Markets

Higher, Longer, Tighter

• US Federal Reserve (Fed) may need to tighten further as US economic indicators (labour and retail sales) continue to surprise to the upside. Money markets are now expecting the Fed funds rate to reach 5.4% in the middle of this year. I.e. another 75 basis points of interest rate hike in the following months. Markets are watching keenly the Federal Open Market Committee (FOMC) meeting on 21-22 March 2023.

Risk On for “Risk-On” Assets

• 10-year treasury bond yield nearly breached 4.0% triggering a further pullback in the US equities market. US equities are vulnerable to further corrections on steep valuations and slowing earnings momentum. A stronger dollar from further interest rate hikes may also weigh on Asian equities.
• China equities corrected sharply in February on i) escalating geopolitical risks after US Secretary State said in an interview that China is considering lethal support to Russia in its efforts in Ukraine and ii) increasingly regulatory risks with news of investigation into China Renaissance Bank’s CEO.

Movers & Shakers

China Equities – Is the Rally Over?

• Watch the “two sessions” meeting in March for pro-market signals. We remain positive on China equities and see current corrections as opportunities to invest.

End of Loose Monetary Policies in Japan?

• Incoming Bank of Japan Governor, Ueda, commented during his confirmation hearing on 24th February that he will maintain their current monetary policies. However, high inflation print may force Ueda to tighten their monetary policy sometime in the middle of the year. This could potentially lead to stronger Yen and a weaker Japanese equities market.

ChatGPT and Generative Artificial Intelligence (AI) to Drive Semiconductor Upturn and the Next Tech Secular Rally?

• The jury is still out on whether generative AI has reached an inflection point to drive a new wave of investments in technology. After Nvidia’s CEO unveiled a new cloud business during its results announcement, analysts are buzzing with excitement on the possibilities of generative AI and its potential implications on the global software and hardware sectors

Recent Releases

Articles

• China Outlook: From “Uninvestable” to “Unavoidable”, 28 Feb 2023
• LionGlobal All Seasons Fund: Tactical Asset Allocation Shift, 15 Feb 2023
• 2023 Market Outlook: The Hour before Dawn, 6 Jan 2023

Podcasts & Videos

• 2023 Market Outlook: 3 Potential Opportunities in China, Singapore and Japan
• LionGlobal Disruptive Innovation Fund: Invest in Innovation, Powered by AI

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