Our convictions change over time, thank you to verify that your preferences always match your expectations.

Pins are saved using cookies. Deleting them from your browser will delete your preferences.

delete all my pins

News 

The price of oil decreases and is at its lowest since November 2016

10 May 2017

Interesting points to note this week :

Brent below 50 dollars, lowest since November 2016. The collapse happens with rising bond yields, which is a rare thing to see. However, inflation breakevens are lower which means markets are rational.

American economic data was in line with expectations :

  • Manufacturing ISM was below expectations, while service ISM was above
  • Employment report showed an outstanding 4.4% unemployment rate (lowest since 2007) but large disappointment on average weekly earnings (+2.5% year over year, lowest since early 2016). Fed gets comfort in its gradual hike strategy

FOMC was pretty dull. Fed deems Q1 GDP weakness as transitory. Market prices a full hike of 25 bps for next meeting in June.

Significant compression in periphery bond spreads: Portugal -25 bps, Italy -20 bps, Spain -18 bps. Political risk in Eurozone gets revised down markedly.

Euro area equities, and particularly banks, outperformed.

This "risk on" tone was observed as well on foreign exchange markets with JPY much lower. We keep this trade on, we have the position since last week after the elections.

La Française & You

La Française Group provides access to the expertise of a number of asset management companies around the world. To provide you with the most relevant information, we have developed an interface to present the full range of products available for your investor profile and country of residence.

Profile
Institutional investors
Wealth management professionals
Individual investors
Location
When navigating on our website, you agree to this policy and consent to our use of cookies in accordance with the terms of this policy. Find out more.