This is the last issue of the Global Weekly for this year. It includes a look back on what happened in stock, bond and currency markets in 2013, and begins with a positive outlook for 2014 from Group Economics.
As the year nears its close, it is natural to look ahead and to consider the future.
Global financial markets are swinging back to a more-normal environment. Therefore, ABN AMRO Private Banking is taking profit on US equities and cyclical stocks, and in particular, targeting European equities, high dividends, buybacks and high-quality bonds.
The ECB took no action this week, which did not come as a surprise. From ECB-president Draghi’s comments, however, financial markets could conclude a change in position from the central bank.
ABN AMRO today announces to have reached an agreement on the purchase of the domestic private banking activities of Credit Suisse in Germany.
Global equity and credit markets continued to perform well this week, with the Nikkei setting a six-year high.
The FTSEurofirst 300 share index climbed towards a recent five-year high and Germany's DAX set a new record on Monday, with a breakthrough nuclear deal between Iran and world powers raising appetite for risky assets.
This week the Federal Reserve and the ECB both tried to steer markets. The Fed wants to prepare markets for an exit from its highly accommodative monetary policy, while the ECB is studying ways to fight uncomfortably low inflation.
Economic developments are such that neither the Fed nor the ECB is likely to change its monetary policy anytime soon.
ABN AMRO reports net profit of EUR 390 million for Q3 2013 and EUR 1,207 million for 9M 2013.
