Global Investment Views

Play the desynchronization of the cycle

The current repricing is a reminder of a regime shift in which stagflationary concerns are becoming prominent. Investors should move towards quality segments in credit and equities, and aim to benefit from the regional divergences that allow us to prefer US (over Europe) and now Chinese equities, but strong selection is important. In FI, we suggest moving towards a neutral duration stance, but keeping an agile view, and on credit, we favour high quality debt as earnings could come under pressure. Overall, a well-diversified stance that explores non-traditional areas such as commodities, and strategies with low correlation to equities and bonds are favoured.”

Amundi Global Investment Views
Global Investment Views - July 2022

Thematic Global Views

Renminbi’s rise will not challenge dollar dominance

A sharp economic slowdown seems to be looming in both Europe and the US, which would make bond markets attractive again, especially in the US. Conversely, the Chinese economy is expected to reaccelerate. International monetary system set to become multipolar as geopolitical factors are likely to prevail.

Renminbi’s rise will not challenge dollar dominance

This Month's Topic

The emerging markets hurdles

While not envisaging any systemic risk propagating across emerging markets, the macro financial outlook remains challenging amid growth concerns, still-high inflation and tighter global financial conditions. The current geopolitical environment, with its impact on macro and financial conditions, is making an idiosyncratic crisis more likely.

The emerging markets hurdles


The ECB’s ability to raise rates will depend on the strength of the antifragmentation tool

The ECB is determined to tighten its monetary policy in the face of record high inflation levels. However, it is addressing that risk by cooling inflation down or pushing the economy into recession or triggering a spike in peripheral debt borrowing costs, as in 2012. The markets are already sounding the alarm about what may lie ahead. Italian government bond yields jumped past 4% this month for the first time since 2014 as investors are concerned about the ECB’s first step in normalising its monetary policy.

The ECB’s ability to raise rates will depend on the strength of the antifragmentation tool

Market scenarios & risks

July-August 2022

We keep the probabilities of our central and alternative scenario unchanged versus last month but amend the narrative to take into account the evolving geopolitical situation (see Ukraine crisis tree).

Market Scenarios and Risks - July/August 2022

Macroeconomic picture

July-August 2022

Macroeconomic Picture by area and Macro and Market forecast.

Macroeconomic Picture - July/August 2022


RC - Author - DEFEND Monica
Head of Amundi Investment Institute & Chief Strategist, Member of Amundi’s Executive Committee
RC - Author - Vincent Mortier
Group Chief Investment Officer
Germano Matteo
Deputy Group Chief Investment Officer