It seems that nothing can break the bond rally — or deflate the bond bubble, as critics would say. Inflows into bond funds have hit a record this year, in tandem with record high bond prices, but how long can the euphoria last?
There have been “massive” outflows from capital markets in the past week, but although they brought Bank of America Merrill Lynch’s “bull and bear” indicator close to the “buy” signal, they haven’t managed to trigger it.
Here’s a summary of last week’s market moving news and a look ahead to the data, events and earnings reports that are likely to move the markets in the week starting June 26, 2017.
Negotiations on Britain’s withdrawal from the European Union started in Brussels amid warnings by both Chancellor of the Exchequer Philip Hammond and Bank of England Governor Mark Carney that a “soft” Brexit is needed in order to prevent a deep fall in living standards.
What a spectacular lesson the first half of the year delivered for investors. At the beginning of the year, it looked like the UK’s vote to leave the European Union was a great idea: the eurozone seemed on the brink of disintegration.
Here’s a summary of last week’s market moving news and a look ahead to the data, events and earnings reports that are likely to move the markets in the week starting June 12, 2017.
The UK Conservative party lost the majority it had in parliament following snap elections called by Prime Minister Theresa May in a desire to strengthen her majority ahead of Brexit negotiations. The pound fell on the result as investors weighed the consequences, while the FTSE 100, dominated by exporting companies, rose.