The week in charts – episode 2

· by · in FINANCIAL MARKETS, MACRO. ·

11. Mark Rutte’s VVD wins Dutch elections, Wilders’ PVV second

In the end, things were much less exiting than the polls made us believe. Rutte became the clear winner obtaining 33 of the 150 available seats. Reminder, this is still a loss of eight seats.

10. Le Pen’s loss of momentum

The result of the Dutch elections pushed the Le Pen winning odds down just a little bit more.

9. Fed delivers dovish hike

The Fed hiked rates just for the third time in a decade, and emphasized it’s likely to continue to take things slow.

8. US inflation at 5-year high

Inflation is back! Perhaps only temporarily (I don’t really think so), but it’s here.

7. Dollar down

Despite the Fed being the only one of the major central banks tightening, the US dollar has not strengthened. This is in line with previous Fed hiking cycles.

6. Central bank convergence

While the ECB and BoE left their monetary policies unchanged, the decision of the latter was not unanimous. Should we get ready for higher rates in Europe as well?

5. Distortion

For now, European bond markets, especially those in the Eurozone, remain incredibly distorted.

4. Italian Issues

Italy’s government debt rose to a massive EUR 2.25 trillion in January, or more than 130% of GDP. Perhaps it’s for the best that Eurozone yields are so distorted.

3. Equities rally on

There is very little that can derail equity markets, right now. Central banks, debt, politics, it just doesn’t matter… for now.

2. Brexit record

UK unemployment is down to the lowest level since 1975! Just saying.

1. Yield history

Pretty well received on Twitter this week. Are bond yields really that low, or have the last four decades distorted our view?

One response to “The week in charts – episode 2”

  1. Pingback: The week in charts – episode 2 - Investing Information Online·

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