Whilst global equity markets are flat on the week, they are up year-to-date 12-13%. However, the big news over the last ten days was that bond markets suddenly became tired of waiting for the anticipated upturn in global industrial production, which equity markets are pricing in.
Global equity markets are up roughly one per cent this week. Volatility is still low and ten year US government bonds have rallied a little on the week and now stand at some 2.5% versus 2.6% last week. Year to date global equity markets are up some 12-13%.
Those who follow this commentary know the authors believe that the three main market driving topics are trade, Chinese stimulus and Brexit. However, one additional topic is knocking on the door for inclusion:
Volatility continued to remain pretty low and Markets were up roughly one percent over the week. Of the three things that are driving markets – trade, Chinese stimulus and Brexit – there was good news on two of the three this week.