Natixis Sees 2.4% US Growth Outpacing Eurozone 0.7% as Warsh Fed Lifts Volatility Risk
Updated
Updated · Funds Society · Aug 17
Natixis Sees 2.4% US Growth Outpacing Eurozone 0.7% as Warsh Fed Lifts Volatility Risk
1 articles · Updated · Funds Society · Aug 17
Summary
2.4% U.S. growth versus 0.7% in the eurozone should define the second half, with Natixis IM Solutions expecting the transatlantic economic split to persist through year-end.
Middle East-driven energy pressure is seen weighing on Europe more heavily, while any renewed escalation could jolt energy, bond and currency markets even without a broad market selloff.
Kevin Warsh’s Fed is a key uncertainty after dropping forward guidance, a shift Chetouane says leaves more room for policy surprises, higher capital costs and a bigger sovereign-bond risk premium.
Upward pressure on bond yields is expected to continue, prompting a shorter-duration stance with more liquidity or high-yield credit, while equities—especially growth and technology shares—remain overweight on earnings support.
U.S. domestic politics is the risk markets may be underpricing, with the approach of midterm elections seen as a potential source of social division and market disruption.