It’s hard to find a more bullish start to a year than this one. There were “blockbuster” inflows of capital into stocks, as well as corporate and emerging markets bonds, according to the latest analysis by Bank of America Merrill Lynch.
A recent working paper published by the International Monetary Fund looks at the impact of unconventional monetary policy on an open economy, taking Canada’s case as an example.
The paper’s main finding is that unconventional monetary policy by the Canadian central bank has had expansionary effects on the Canadian economy. Continue reading
Well, wasn’t last week a bit of a cold shower for investors. European stock markets closed lower and US ones were flat last Friday, after nonfarm payrolls badly missed expectations in March.
In fact, it’s a surprise the markets declined so little. Investors had other things to worry about, too: President Trump’s surprise airstrike on Syria was a big one. The president, who until not long ago was making positive noises about his Syrian and Russian counterparts, changed his mind after a chemical weapons attack that killed many children.
The first quarter of 2017 is over, Brexit has been finally triggered and a period of political turmoil in Europe is ahead, with elections in France and Germany, and perhaps Italy too.
So far, it seems like nothing has been serious enough to give investors reason to pause the rally in stock markets. Both the US and the UK indices hit record highs — this could be a sign of confidence, but it could also mean the central banks’ easy monetary policies are still inflating asset prices.