Market Outlook
The Markets - A Review
 
 

Market Outlook

The Markets - A Review

 

• Markit's PMI for the euro area's manufacturers rose to a record high in December. Operating conditions continue to improve in all of the eight countries for which separate data is gathered, including Greece (where the manufacturing PMI is at a 114-month high). Once again, the survey highlighted strong growth in output, jobs and new orders.

• In early December, Eurostat published estimates of gross domestic product (GDP) growth for 3Q17. Relative to 3Q16, growth is estimated at 2.6%.1

• The European Central Bank (ECB) meeting in December ended as expected, with upward revisions to both growth and inflation. Ten-year Bund yields underperformed both treasuries and U.K. gilt, finishing the month five basis points (bps) higher.2

• Oil prices continued to rally, making December the fourth consecutive month of price increases. The Brent ended 2017 18% higher.3

• On the political front, the three pro-Catalan independence parties won a majority of parliamentary seats, but they fell short of a parliament majority. The Italian government has announced that the next election will take place on March 4. The new electoral system is proportional for the most part. The polls say that no single or party coalition is projected to win, and it will likely need support to form a grand coalition to rule the country. In the meanwhile, the Italian economy picked up speed and our economists revised GDP growth numbers upward for 2018.4

 
Head of European Equity Team
 
 

1 Eurostat.

2 Morgan Stanley Research, January 2018.

3 MSIM, January 2018.

4 Morgan Stanley Research, December 2017.

The views and opinions are those of the author as of the date of publication and are subject to change at any time due to market or economic conditions and may not necessarily come to pass. The views expressed do not reflect the opinions of all investment personnel at Morgan Stanley Investment Management (MSIM) or the views of the firm as a whole, and may not be reflected in all the strategies and products that the Firm offers.

This material is a general communication which is not impartial and all information provided is for informational and educational purposes only and should not be deemed as a recommendation. The information herein does not contend to address the financial objectives, situation or specific needs of any individual investor.

Any charts and graphs provided are for illustrative purposes only. Any performance quoted represents past performance. Past performance does not guarantee future results. All investments involve risks, including the possible loss of principal.

Prior to making any investment decision, investors should carefully review the strategy's / product's relevant offering document. For the complete content and important disclosures, refer to the link above.

It is important that users read the Terms of Use before proceeding as it explains certain legal and regulatory restrictions applicable to the dissemination of information pertaining to Morgan Stanley Investment Management's investment products.

The services described on this website may not be available in all jurisdictions or to all persons. For further details, please see our Terms of Use.


Privacy & Cookies    •    Terms of Use

©  Morgan¬†Stanley.¬†All rights reserved.