Weekly Update from Asgard-Steno Global Macro
Another week in the books, and we’ve successfully navigated the choppy macro markets once again. Early in the week, we made a timely exit from our net-long China tilt (Copper vs. Hang Seng) as Chinese authorities adjusted their monetary policy rhetoric. However, the much-anticipated policy action failed to materialize, leaving markets with little more than another round of word salad. In response, our nowcasts have turned negative on China, and we are actively exploring this shift in our strategy.
In Western markets, we maintained our upbeat stance on U.S. and European procyclical equities, enjoying solid gains throughout the week. This aligns with our view of a re-ignition of manufacturing growth paired with inflation momentum—a pattern commonly seen in an accelerating business cycle.
On the flip side, inflationary pressures are pushing bond yields higher, which has weighed on our trend portfolio in USDs and is the reason we close the week with a slight w-t-d loss. We continue to anticipate upward pressure on EUR rates, though we are less certain about higher yields in the U.K. and U.S. due to weakening momentum in our labor market gauges for those regions.
Meanwhile, our risk premia strategy on AAA-rated instruments remains a standout performer, serving as an effective optimization strategy for our cash holdings.
Wishing you all a great weekend on behalf of the portfolio management team.
Best regards,
Andreas Steno
CIO, Asgard-Steno Global Macro
Year To Date: 0,52%
Month To Date: 0,52%
Current allocation:
