Today’s monetary policy statement hints at a possible pause in rate cuts next month.
By Fidelity International Global Macro & Asset Allocation Team
The European Central Bank (ECB) cut its policy rates by 25 basis points (bp) at today's meeting, bringing the deposit rate to 2.5 per cent, in line with expectations. But the Governing Council finds itself at a crossroads.
How will recently announced fiscal stimulus affect ECB policy? There are several ...

China’s economy is increasingly driven by innovation and policy that supports technology and science. The recent breakthroughs in AI reinforce our view that China is an allocation worth making.
By Evelyn Huang, Portfolio Manager
Judy Chen, Investment Writer
Aside from fireworks and dumplings, watching the televised annual Spring Festival Gala - or chunwan - has been a holiday tradition for every Chinese family on the eve of...

As we enter the Year of the Snake, the path ahead reveals divergence - across countries, asset classes, and sectors. In this edition of Fidelity Focus, Christopher Wong, Client Portfolio Strategist explore 8 convictions for the year ahead.

Artificial intelligence is expected to have a minimal impact on companies’ profitability in 2025, with most of its potential still some years away. For now, though, the big names in technology are still going strong as they prepare the ground for this brave new world.
Will 2025 be the year AI takes over the world? The word from our analysts is: don’t get too excited. At least, not yet.
Our annual survey shows a small drop in the proportion of Fidelity ...

Could the president’s second term be as much about dealmaking as inflation?
Eight years on from his first inauguration as president, the global companies that Fidelity International’s analysts cover believe Donald Trump’s arrival in the White House will have more impact than last time. Yet there are also expectations of a real improvement in the value of a number of sectors, driven chiefly by hopes for a surge in corporate mergers.
Those are the head...

The active exchange-traded fund (ETF) market has continued its impressive growth in 2024, and is likely to continue to grow rapidly over the coming year.
– The ETF market continues its meteoric growth, with active ETFs’ market share rising as asset allocators look beyond passive funds towards research-led solutions that can supplement returns and help manage idiosyncratic investment risks.
– Our active ETFs represent the next generation of portfolio building blocks fo...

Investors would do well to counterbalance their public holdings by increasing exposure to private investments.
Top convictions for 2025
– Private equity is still the largest raising asset class, and given how quiet the IPO markets have been we believe mid-market provides the best risk-return options
– Infrastructure is likely to provide more opportunities as growth in digital infrastructure and renewable energy assets is supported by th...

We are positive on risk assets despite being later in the cycle.
Top convictions for 2025
– For the tactical asset allocator: US mid-caps offer a way to capitalise on the country’s positive earnings momentum while avoiding the higher valuations of the market’s biggest names
– For the income investor: Easing policy and high yields are good news for carry trades. But, given risks posed by US fiscal inflation, we are looking to non-US duration, CLOs, and sho...

After navigating an interest rate hiking cycle, fixed income investors face a completely different challenge in 2025.
Top convictions for 2025
– Defensive US dollar investment grade – to shelter from recession risks.
– Global short duration income – to lock in decent all-in yields.
– Asian high yield – to capture attractive carry and spreads compression.
A dominant theme for fixed income markets in 2025 will be where US interest rates find themselves a...

A decisive US election, political ructions in Europe, and the first signs of Chinese fiscal action spell more volatility for stock markets in 2025. And new roads to returns.
Top convictions for 2025
– US stocks will outperform the rest of the developed world on earnings
– Japanese shares are still a strong bet as reforms improve returns
– Nerves over valuations make the case for income
Pound for pound, macro and monetary policy should deliver a positive environment for ...