Easier monetary policy and falling oil prices put downward pressure on long-term interest rates. However, sustained US growth and, more importantly, additional economic stimulus in China put upward pressure on long-term interest rates. Which forces will prevail and what does this mean concretely for short-term and long-term interest rates?
 

The recent decline of oil prices, the dollar and long-term rates bodes well for economic growth. This is reinforced by monetary easing by the US and Chinese central banks. Is this the all clear signal for an outperformance of risky asset prices for the remainder of the year?

Note: For the main Q3 Strategic Asset Allocation report, scroll down to the 'Previous Reports' section. Thematic reports like this are published in the months between.