With the rising political risks. A fading era of central-bank stimulus. The potential end of a multi-decade bull run in U.S. government debt.
The major economies have shown signs of improvement in recent months, helping to rekindle investors’ spirits, a key technical indicator has helped juice the global rally in financial assets: supply.
According to JPMorgan Chase & Co, net supply of global equities,may flatline this year after falling into negative territory in 2016 for the first time on record.
Bond investors in Europe, the U.S., and emerging markets are poised to become cash-rich in the coming months thanks to an avalanche of maturing debt.
In the equity and bond markets, the implications are the same.
A good supply outlook is a positive market technical indicator for corporate financing conditions around the world.
JPMorgan analysts paint a stark illustration of this positive picture for market technicals.
Analysts at JPMorgan paint a stark illustration of this positive picture for market technicals. They calculate that global equity supply fell into negative territory last year for the first time ever, as share buybacks, mergers and leveraged buyouts offset public offerings and other corporate activities that tend to increase the amount of shares in circulation.
Sales of U.S. investment- grade debt set an all-time monthly record in January reaching $185 billion, as companies seek to fund themselves ahead of expected U.S. interest rate hikes.
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