Brexit remained the main focus after the weak job report in the US last week. Global safe haven yield drifted strongly lower this week as risk aversion kept markets under pressure. Two weeks ahead the referendum, markets have moved, repricing higher Brexit risk. Volatility is spiking and mistake opportunities are currently everywhere.
On the data front this week:
- Fed Chair Yellen’s speech was dovish as she omitted the words "in the coming months"
- In China, macro data released are more positive. Trade figures look better as China’s imports increased and exports stabilized
Next week a flurry of economic data will be released (housing sector, inflation…) and central banks meeting will be a focus with the Fed and Bank of Japan meetings. This FOMC will be key. A June hike is clearly off the table but the statement and the press conference could be less dovish than expected.
La Française’s Essentiel Markets brings you an insightful analysis of the latest financial news by François Rimeu, Head of Total Return at La Française Asset Management.