There are clearly three main drivers in today’s markets, which explain the recent volatility and lack of direction. The three factors are: the slowdown in China and fears of a hard landing; the US business cycle; and, crisis flares from the Eurozone periphery. To some extent these show the market is addicted to extravagant Chinese read more
Markets in March seem directionless, confused. There are a few important issues that provide reason for caution. None of the issues that cause concern are new. Last week the Fed decided to provide its first signal that it could rid markets from its ‘training wheels’ when it characterize the economic situation as improving, including the read more
Last year’s volatility was mostly due to the euro crisis, though there were other shocks (especially oil during the first quarter). The euro crisis is not over, but most likely its potential for contagion has been minimized significantly by the actions of the European Central Bank (ECB), which we had highlighted as the key pillar read more
Despite Hungary not sharing the euro, what the EU does about Hungary should have very relevant implications for the euro and the credibility of the reforms Merkel and Sarkozy are trying to implement. Hungary is not only in the middle of mini fiscal and political crises, but is potentially the most recent and clear-cut test read more
(Articles 11-14 of 14) | Previous
