As European Union (E.U.) leaders bask in crafting their most inclusive bailout plan to date, the markets are left wondering if it will be enough this time. To be sure, E.U. leaders have thrown the kitchen sink at the problem, dismissing their concerns over default, dramatically expanding the powers of its bailout fund and making sure Greece does not come up short on cash for the foreseeable future. While this may seem enough, several nagging problems persist, including slow growth within the periphery nations, the high value of the Euro and its negative impact on struggling economies, and the potential that the current political alliance will disintegrate as the size and scope of bailouts potentially increase. From the market’s perspective, these measures are good enough for now, and a strong early week risk aversion trade reversed itself as risk is again in vogue. Stocks were up strongly, while higher beta sectors outperformed. We are still awaiting a resolution to the debt ceiling from Washington, although it appears that a deal is close to being reached, which will occupy most investors’ mind share next week. Read the full commentary now. https://www.pershing.com/email/pdf/pershing_fixed_income_commentary.pdf
Related Articles
Market Insights
Bolton Global Capital is not a subsidiary or division of BNY Mellon or Pershing and has no relationship to either company other than offering clearing and custody services provided by Pershing to Bolton customers on a fully disclosed basis.
Newsletter Económico Mensual
A mediados de octubre se conoció una nueva edición de las Perspectivas Económicas Mundiales (WEO, por su sigla en inglés) que produce trimestralmente el staff del Fondo Monetario Internacional (FMI): EI EMI espera que el PIB mundial crezca este año...
Informe Mensual De Mercado
Si bien no tenemos certeza de una resolución clara y justa a nivel geopolítico, los mercados se concentraron en la parte positiva, las “buenas intenciones”, y ensayaron un rebote que los llevo a cerrar marzo con números positivos, acortando la...
Macro Outlook
LatAm ConsultUs Macro Outlook para acciones, valores de renta fija, commodities y cash.
Newsletter Político Mensual
La guerra en Ucrania tiene poco de original. Y esto es así no porque – al decir del eximio escritor español Arturo Pérez-Reverte – todas la guerras sean “la misma guerra”. Sino porque el modus operandi asumido el presidente ruso...