Investment Institute
Monthly Market Update

October Global Macro Monthly - Transition costs to net zero: significant but necessary

  • 20 October 2021 (10 min read)

Key points

  • Rising natural gas prices are the latest supply shock that will leave inflation higher and more persistent. We raise our inflation forecasts, but still see inflation as transitory, absent labour shortage persistence
  • Inflation adds to COVID and supply interruptions to soften the growth outlook for the second half of the year, despite a solid first half. The 2021 growth outlook remains strong in most regions, but the 2022 outlook is softening.
  • Policymaking is difficult in the face of supply shocks. Most try not to reduce fiscal stimulus too quickly.
  • Financial conditions are tightening as markets price earlier central bank rate increases in most major regions. Yet recent moves appear extreme and current market pricing may fail to account for a sharper deceleration in growth over the winter.

Download the full insight

Full slide deck of our October investment strategy
Download full deck (2.11 MB)

Related Articles

Monthly Market Update

October Op-Ed - The monetary tide is turning

  • by Gilles Moëc , Chris Iggo
  • 20 October 2021 (10 min read)
Monthly Market Update

June Op-Ed - Stories for the summer

  • by Gilles Moëc , Chris Iggo
  • 29 June 2022 (5 min read)
Monthly Market Update

June Global Macro Monthly - A summer of discontent

  • by AXA IM Investment Institute
  • 29 June 2022 (10 min read)

    Disclaimer

    This website is published by AXA Investment Managers Asia (Singapore) Ltd. (Registration No. 199001714W) for general circulation and informational purposes only. It does not constitute investment research or financial analysis relating to transactions in financial instruments, nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services, and should not be considered as solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalized recommendation to buy or sell securities. It has been prepared without taking into account the specific personal circumstances, investment objectives, financial situation or particular needs of any particular person and may be subject to change without notice. Please consult your financial or other professional advisers if you are unsure about the information contained herein.

    Due to its simplification, this publication is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this publication is provided based on our state of knowledge at the time of creation of this publication. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision.

    All investment involves risk, including the loss of capital. The value of investments and the income from them can fluctuate and investors may not get back the amount originally invested.

    Some of the Services and/or products may not be available for offer to retail investors.

    This publication has not been reviewed by the Monetary Authority of Singapore.

    Disclaimer

    This website is published by AXA Investment Managers Asia (Singapore) Ltd. (Registration No. 199001714W) for general circulation and informational purposes only. It does not constitute investment research or financial analysis relating to transactions in financial instruments, nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services, and should not be considered as solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalized recommendation to buy or sell securities. It has been prepared without taking into account the specific personal circumstances, investment objectives, financial situation or particular needs of any particular person and may be subject to change without notice. Please consult your financial or other professional advisers before making any investment decision.

    Due to its simplification, this publication is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this publication is provided based on our state of knowledge at the time of creation of this publication. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision.

    All investment involves risk, including the loss of capital. The value of investments and the income from them can fluctuate and investors may not get back the amount originally invested.

    Some of the Services and/or products may not be available for offer to retail investors.

    This publication has not been reviewed by the Monetary Authority of Singapore.