- It was a choppy trading week for equities, as the market struggled to gain momentum in either direction. At the June Federal Reserve meeting interest rates were increased by 25 basis points, boosting the target range to 1%-1.25%. This move had been well flagged by Fed Chair Yellen and her colleagues, and thus invoked very little market reaction.
- Data emanating from the US somewhat disappointed last week, as softer than expected inflation data led to a fall in Treasury yields (yields move inversely to price). Housing and retails sales figures also came in slightly weaker than forecast.
- In Europe, French President Macron led his En Marche party to a decisive parliamentary victory. En Marche and its centrist ally Modem secured 350 of 577 seats which reinforces Macron’s position post the Presidential election. However, opponents will point to the record low turnout as a sign that issues remain for the French electorate.
Source : Zurich Life Assurance plc
Zurich House, Frascati Road, Blackrock, Co. Dublin, Ireland.
Monday 19th June 2017