1/n Global equities Q2 2018 recap: Despite concerns on trade, US monetary tightening, curve flattening, and rising oil prices, global equities were flat in Q2. (source HSBC Equity Research) #stocks
2/n US and Norway were the only two major markets to rise in USD terms. Eurozone fell 4%, EM 10% (worst since Q3 2015). The 6% rise in the DXY USD was the key driver. Brazil was the worst performing market globally, down 27%, as political concerns weighed.
3/n Valuation multiples broadly stable over Q2. MSCI ACWI PE is at 14.9x. This is 9% below start of 2018, and back below the long-term average of 15.7x.
US PE at 16.8x
Europe PE at 13.8x
EM PE at 11.4x
US PE at 16.8x
Europe PE at 13.8x
EM PE at 11.4x
4/4 2018 EPSg expectations continued to edge up. Global estimate rose to 15.5% from 13.9%, led by the US, where estimates now stand at over 22%. All regions saw an improvement apart from Japan where expectactions fell to just 2.3%.
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