13. Base effects!

BREAKING! Eurozone #inflation falls to 1.5% in March, from 2.0% in February. Core #inflation also down to 0.7%. https://t.co/N26IUMZvsB

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jeroen blokland (@jsblokland) March 31, 2017

Eurozone inflation came in significantly lower than expected, mostly due to a bigger than anticipated drop in energy prices. Core inflation fell as well, but this has to do with Easter falling in April this year, but March last year.

12. ECB hike

Aand it's gone! The implied probability of a December #ECB deposit rate hike falls to 24% from 56% after disappoin… twitter.com/i/web/status/8…

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jeroen blokland (@jsblokland) March 31, 2017

Hence, most bets for a December rate hike by the ECB are off.

11. German boom

#Germany's ifo index rises to the highest level in almost six years! https://t.co/XVV8W0yrOl

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jeroen blokland (@jsblokland) March 27, 2017

Meanwhile, the economic upswing grows stronger. The Ifo index, the bellwether of the German manufacturing sector, reached the highest level in almost six years.

10. Italian Boom

Even #Italy is joining the #Eurozone growth revival! Manufacturing confidence back a pre crisis levels! https://t.co/9ZzjHiOsrb

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jeroen blokland (@jsblokland) March 29, 2017

Well perhaps not a boom, but certainly an improvement. Even ‘no-growth’ Italy is speeding up.

9. Divergence

Monetary divergence in one chart! #Fed #ECB https://t.co/gkQavjD4Ex

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jeroen blokland (@jsblokland) March 29, 2017

At some point even the ECB has to scale back its extraordinary monetary policy, right? But not just yet.

8. The Taper

Chart of the Day! Spot the TAPER! #ECB https://t.co/aStZxnVWpd

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jeroen blokland (@jsblokland) March 31, 2017

It’s likely that the ECB’s first move to normalize policy is to (further) taper its bond buying program. But at what pace?

7. Liquidity drag

The era of relentless quantitative easing by central banks may soon be behind us! via @FT https://t.co/omTF1GC2dN

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jeroen blokland (@jsblokland) March 27, 2017

Whatever the pace, we should ready for a slow reduction of global liquidity. Something we haven’t seen to for almost a decade now.

6. Brexit arrives

This is just great! via @omichalsky ht @RobertAlanWard #BREXIT https://t.co/orYfEqFMhn

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jeroen blokland (@jsblokland) March 29, 2017

It took nine months, but Brexit is finally here. Not that the German didn’t keep the door open until the very end!

5. Loss of correlation

#Brexit chart! The #EURGBP and UK Equities have started to diverge! https://t.co/yqI9M94A4E

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jeroen blokland (@jsblokland) March 29, 2017

So, will the UK fall in the abyss? We just don’t know. Some things are changing however, like a weakening GBP no longer translates into UK outperformance.

4. ZUMAZAR

Ouch! #ZAR down almost 9% for the week as political tensions in South Africa rise. https://t.co/DCGsKTwPiK

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jeroen blokland (@jsblokland) March 31, 2017

Firing your Finance minister, especially one that is well-respected by markets, is not always a good thing. The ZAR got hammered this week.

3. Chepreciation

In case you missed it! #China's trade weighted #CNY is down to the lowest level since late 2014! https://t.co/TOIwmdHJT9

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jeroen blokland (@jsblokland) March 28, 2017

Much slower, much quieter, but equally significant. China’s currency is down to the lowest level since the end of 2014.

2. Hangin’ in there

Hanging in there! One reason for why global equity markets have been resilient so far. Economic surprises remain po… twitter.com/i/web/status/8…

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jeroen blokland (@jsblokland) March 28, 2017

Oil is down to pre-Trump levels, the same holds for the US dollar, yields are down, but equities are hanging there. The reason? Non-Trump related growth surprises.

1. Bear coming?

In case you missed it! Investors think there’s just 10% chance of a bear market in the next 12 months! via… twitter.com/i/web/status/8…

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jeroen blokland (@jsblokland) March 29, 2017

Investors think not. Markets price in just a 10% chance of a market correction in the next 12 months.