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The IMF may have cut its global growth forecasts for 2023 from 2.9% to 2.7% but investors now seem to favour a soft landing scenario, especially in the US.

China’s Covid management keeps on surprising us. The much-criticised zero-Covid approach with its rigorous lockdowns were suddenly replaced by an uncontrolled reopening which completely swamped the healthcare system.

China’s Covid management keeps on surprising us. The much-criticised zero-Covid approach with its rigorous lockdowns were suddenly replaced by an uncontrolled reopening which completely swamped the healthcare system.

Watch the video with Benjamin Melman, Global CIO Edmond de Rothschild AM

It was a busy week for macroeconomic data but central banks had a field day announcing their last policy decisions for the year.

Shanghai’s composite index rebounded sharply from 13-year lows on hopes China would reopen more rapidly than expected.

Demonstrations in China against Covid restrictions initially worried investors but government support for property companies and an apparent move towards gradual easing of sanitary conditions helped calm nerves.

Falling government bond yields in the US and Europe helped equity markets consolidate recent gains.

Falling government bond yields in the US and Europe helped equity markets consolidate recent gains.

As the end of 2022 approaches, various encouraging elements have disrupted the prevailing gloomy outlook: China has started easing its zero-Covid policy, the global economy may be decelerating but is less depressed than expected, gas prices everywhere have fallen sharply and inventories look high enough to get us through winter. Above all, there are incipient indications that US inflation is turning lower.

After enjoying a sharp rebound in October, risk assets started November in a hesitant mood ahead of the consumer price index in the US.

The “R&D/Sales” ratio for our Healthcare strategy reaches 25%, compared to only 14% for its benchmark.