Topic of the week: The return of inflation?
• A rapid progression of monetary aggregate is one of many elements that could push inflation on a higher path
• This scenario is absolutely not priced nor expected by the markets and could trigger sizeable movements, especially for the curve.
Brexit : The moment of truth
• Time is running out and divergences are strong increasing the uncertainty and the risk of a hard Brexit
• Significant disruptions from January 1, even with an agreement
• Considerable impact on British growth of a hard Brexit
Market review: Casting doubt
- ECB further easing expected this week
- US fiscal deal could be signed this week
- Dollar slide continues
- Rich valuations in high yield space
Figure of the week
100 trillion USD. At the end of last week the world market capitalization past that mark for the first time ever according to the Bloomberg estimate. That is a 15% increase since the beginning of the year.
Main market indicators
