LUXEMBOURG CITY, LUXEMBOURG / ACCESSWIRE / May 19, 2018 / According to the recent IMF World Economic Outlook, the growth of global economy may become a key driver for currencies, stocks and commodities in 2018, primarily due to risk management being closely tied to understanding the evolution of global growth, volatility, and their combined effect on the market. QSmart Limited, a market leading provider of Contracts for Differences, stocks, shares, and indices, as well as a part of FITCo and ARTCORP, shares its thoughts on the favorable outlook for Forex markets in Asia.
Analysts at leading global investment banks Goldman Sachs and Barclays predict global growth to hit 4% in 2018 - the highest mark since 2011 - while U.S. economists classify the outlook as highly beneficial. On the back of the economic growth, Asian currencies are forecasted to be investor favored, further supported by the continued rise of export and policy normalizations in the region. Furthermore, according to a Bloomberg survey involving 20 investors, traders and strategists, bonds and equities in developing Asian countries will continue to outpace their developed-country peers in 2018. ''The environment for emerging markets was great in 2017 with the Goldilocks factors of economic growth and low inflation in industrialized countries,'' said Hideo Shimomura, chief fund manager at Mitsubishi UFJ Kokusai Asset Management Co., a leading investment firm, ''The emerging markets rally we saw this year will probably extend into 2018, but after a period of strong growth and low inflation, some adjustment will be inevitable.'' While the Federal Reserve remains key to determine the fate of what seems to be the best year for emerging markets since 2009 in terms of stocks and currencies, other factors like Brexit, European Central Bank's and Bank of Japan’s actions along with the global economic outlook for China may play a significant role.
As noted by QSmart Limited, there are also a couple of industry-wide factors that affect the Asian market outlook: Markets in Financial Instruments Directive ( Mifid) II - a revamp of Mifid, the legislation for the regulation of investment services within the European Economic Area, designed to increase the transparency in all asset classes and offer greater protection to investors - and the global code of conduct - a new set of 55 principles that are meant to replace regional codes with a single blueprint for conduct in the Forex markets. ''One of the most significant factors that will affect the FX market in 2018 will be the implementation of Mifid II. This will impact the market in three primary ways - the migration of trading to regulated platforms, the introduction of extensive reporting obligations and an increase in compliance requirements.'' The implementation of the global code of conduct, which happened in early 2017, is expected to redefine the rules of the Forex industry in the current year. ''It is clear that the code is shining a light on areas of the market that have long been overdue for review. Equality, transparency and market conduct have emerged as key industry themes which I feel will continue to dominate discussions over the next year and beyond.'' Said Roger Rutherford, chief operating officer at trading platform ParFX.
QSmart Limited is a market leading broker offering CFDs on currencies, indexes, commodities and stocks, specializing in trading of financial products in OTC and organized stock markets. Thanks to advanced technology and a wide selection of modern trading instruments, the company's clients enjoy a seamless and honest trading experience that continuously delivers transparent and fair results. With the mission to become the number one offline trading platform for both institutional and retail clients, and guided by the determination to deliver world-class service to its clientele, QSmart is dedicated to building loyal and long-lasting relationships via constant innovation and self-evaluation.
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