END JANUARY LIQUIDITY DATA NOW AVAILABLE
CrossBorder’s liquidity updates with aggregate end January data are now available through Linchpin. Click on the GLI Update icon on the Liquidity page for more details.
The global supply of liquidity remains, as at the end of 2016, a little below average, although that hides weak conditions in Japan and the US, and much stronger in China and Europe. It is also noteworthy that central banks round the world are slowly tightening. US assets and the US$ look most vulnerable.
The ‘big picture’ story is the ending of the 2012-15 surge in US corporate cash flows, on the one hand, and the simultaneous ending of the four-year, policy induced deflation in China, on the other. This will be hugely supportive of EM, which move closely with Chinese and not US prospects.