Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Cross Asset Strategy

<ul>
<li>Focus solely on the local government debt swap which is bigger than expected</li>
<li>There is nothing new in policy direction but promises of more to come</li>
<li>The market action around the press conference shows the potential for upside surprises</li>
</ul>


Focus solely on the local government debt swap which is bigger than expected
There is nothing new in policy direction but promises of more to come
The market action around the press conference shows the potential for upside surprises


Derivatives and Quantitative Strategist

Gaudenz Schneider

Event-Driven

<ul>
<li>US equity indices led global markets in a post-election sharp decline in implied volatility.</li>
<li>With only 34 trading days left in 2024, investors might want to hedge the gains from a profitable year with tactical long puts.</li>
<li>Several markets make good candidates for long put positions due to a combination of cheap options and potentially bearish factors. One example being the <a href="https://www.smartkarma.com/entities/s-p-asx-200" target="_blank" data-smartkarma-citation="entities:22901:1" rel="noopener">S&amp;P/ASX 200 (AS51 INDEX)</a> </li>
</ul>


US equity indices led global markets in a post-election sharp decline in implied volatility.
With only 34 trading days left in 2024, investors might want to hedge the gains from a profitable year with tactical long puts.
Several markets make good candidates for long put positions due to a combination of cheap options and potentially bearish factors. One example being the S&amp;P/ASX 200 (AS51 INDEX) 


EQD | Global Option Implied Volatility – 34 Trading Days Left in 2024, Year-End Positioning.

<ul>
<li>Expectation management of any stimulus package gives the potential to overdeliver</li>
<li>Recent economic data is surprising to the upside in China</li>
<li>Divergent investor viewpoints and Trump's win likely mean offshore markets will be more volatile than onshore</li>
</ul>


Expectation management of any stimulus package gives the potential to overdeliver
Recent economic data is surprising to the upside in China
Divergent investor viewpoints and Trump's win likely mean offshore markets will be more volatile than onshore


Much Ado About Nothing -Or Why the China Stimulus Package Doesn’t Matter as Much as Investors Think

<ul>
<li>A monthly review of how the markets and our themes are currently performing</li>
<li>Analysing what went wrong and what went right in stocks and sectors</li>
<li>Highlighting positions added or removed from the thematic investment portfolio</li>
</ul>


A monthly review of how the markets and our themes are currently performing
Analysing what went wrong and what went right in stocks and sectors
Highlighting positions added or removed from the thematic investment portfolio


October Themes and Thematic Portfolio Review

<ul>
<li>Global equity markets have experienced falling prices and increasing volatility over the past week. Some markets were affected more than others.</li>
<li>Hedging opportunities in the <a href="https://www.smartkarma.com/entities/s-p-asx-200" target="_blank" data-smartkarma-citation="entities:22901:1" rel="noopener">S&amp;P/ASX 200 (AS51 INDEX)</a>, the <a href="https://www.smartkarma.com/entities/ftse-100-index-ukx" target="_blank" data-smartkarma-citation="entities:22904:1" rel="noopener">FTSE 100 Index (UKX INDEX)</a>, or the Swiss Market Index; all with sub-13% implied volatility.</li>
<li>The <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 (NKY INDEX)</a> experienced some of the largest market and volatility moves in international comparison, with more turbulence likely ahead following the Japanese elections.</li>
</ul>


Global equity markets have experienced falling prices and increasing volatility over the past week. Some markets were affected more than others.
Hedging opportunities in the S&amp;P/ASX 200 (AS51 INDEX), the FTSE 100 Index (UKX INDEX), or the Swiss Market Index; all with sub-13% implied volatility.
The Nikkei 225 (NKY INDEX) experienced some of the largest market and volatility moves in international comparison, with more turbulence likely ahead following the Japanese elections.


EQD | Global Option Implied Volatility - Nikkei 225, Nifty 50, S&P/ASX 200, S&P 500, SMI, FTSE 100

Hong Kong

The Hang Seng Index is a free-float capitalization-weighted index of a selection of companies from the Stock Exchange of Hong Kong. The components of the index are divided into four subindices: Commerce and Industry, Finance, Utilities, and Properties. The index was developed with a base level of 100 as of July 31, 1964.

Hang Seng Index (HSI INDEX)

NPC/MoF Press Conference- First Take

Local government debt swap surpasses expectations, but promises of more to come is giving some investors fatigue. Market action is promising

Rikki Malik

EQD | Global Option Implied Volatility – 34 Trading Days Left in 2024, Year-End Positioning.

Global equity indices saw a post-election volatility drop, making options cheap in several, but not all, markets. Consider hedging gains with...

Gaudenz Schneider

Much Ado About Nothing -Or Why the China Stimulus Package Doesn’t Matter as Much as Investors Think

Expectation management has been key as China's economic data surprises on the upside, but divergent investor views and Trump's win may lead to...

Rikki Malik

October Themes and Thematic Portfolio Review

This insight was Incorrectly titled September review while it is a review of markets and themes for October including HK/China, Japan, India,...

Rikki Malik

EQD | Global Option Implied Volatility - Nikkei 225, Nifty 50, S&P/ASX 200, S&P 500, SMI, FTSE 100

Global equity markets have seen falling prices and rising volatility. Hedging opportunities exist in the FTSE 100, SMI, and S&P/ASX 200. The...

Gaudenz Schneider

NPC/MoF Press Conference- First Take

​Local government debt swap surpasses expectations, but promises of more to come is giving some investors fatigue. Market action is promising

Rikki Malik

EQD | Global Option Implied Volatility – 34 Trading Days Left in 2024, Year-End Positioning.

​Global equity indices saw a post-election volatility drop, making options cheap in several, but not all, markets. Consider hedging gains with...

Gaudenz Schneider

Much Ado About Nothing -Or Why the China Stimulus Package Doesn’t Matter as Much as Investors Think

​Expectation management has been key as China's economic data surprises on the upside, but divergent investor views and Trump's win may lead to...

Rikki Malik

October Themes and Thematic Portfolio Review

This insight was Incorrectly titled September review while it is a review of markets and themes for October including HK/China, Japan, India,...

Rikki Malik

EQD | Global Option Implied Volatility - Nikkei 225, Nifty 50, S&P/ASX 200, S&P 500, SMI, FTSE 100

​Global equity markets have seen falling prices and rising volatility. Hedging opportunities exist in the FTSE 100, SMI, and S&P/ASX 200. The...

Gaudenz Schneider

Local government debt swap surpasses expectations, but promises of more to come is giving some investors fatigue. Market action is promising

Global equity indices saw a post-election volatility drop, making options cheap in several, but not all, markets. Consider hedging gains with...

Expectation management has been key as China's economic data surprises on the upside, but divergent investor views and Trump's win may lead to...

Global equity markets have seen falling prices and rising volatility. Hedging opportunities exist in the FTSE 100, SMI, and S&P/ASX 200. The...