Last week, the global market sentiment improved noticeable. However, concerns about the state of the Italian economy and its new government, as well as the risk of the outbreak of the global trade war were still important for investors. After all, this time the hawkish statements of the ECB representatives were in the spotlight. It cannot be ruled out that next ECB Governing Council meeting will bring a declaration regarding further future of QE – the market expects the program will be completed this year. As a result, the last week’s weakness of the European stock market indices (against Wall Street) and the appreciation of euro were not a surprise. Nonetheless, it is worth remembering that the prospect of the interest rates raises in the Euroland remains remote.

Weekly comment MM Prime TFI  - June 4, 2018

Weekly comment MM Prime TFI  - May 28, 2018

The last week brought a continuation of increases in the American government bond yields and crude oil prices. In addition, the politics was again in the spotlight. The populist Five Star Movement can gain power in Italy, in one of the largest economies in the EU. Such a scenario is perceived not only as a threat to this country, but also for the Eurozone. Furthermore, Donald Trump suggested trade negotiations with China may not end in a satisfactory manner. This statement hit mainly on Wall Street. During the whole past week, the NASDAQ declined by 0.7%, while the DJI and the S&P500 went down by 0.5%. In Europe, the French CAC40 rose by 1.3%, the British FTSE250 soared by 1% and the German DAX grew by 0.6%.

Weekly comment MM Prime TFI  - May 14, 2018