Looking back at the first half of 2014
Supportive central banks and optimistic expectations pushed prices in financial markets higher
27 June 2014. Everywhere easy monetary policy and expectations that the present expansion can last several years along with low inflation typically pushed both equity and bond prices higher during the first half of the year. Mainly temporary factors held back the US economy in the beginning of the year but growth clearly picked up thereafter and the outlook is positive. The Eurozone is slowly recovering, which has reduced the risk of a break-up of the currency area. Consequently, interest rate spreads between the core around Germany and the crisis-hit peripheral countries shrank a lot. The Swedish business cycle displays big quarterly swings, but the trend is positive. Emerging markets grappled with both economic problems and political upheavals including the conflict between Ukraine and Russia. Their financial markets were volatile but ended the first half more or less in line with developed markets.
» Read the report, written by Dr. Dag Lindskog
