#Market Strategy — 10.06.2015

Market Strategy Video June 2015

Florent Bronès

Although last month was filled with many positive evolutions for mature markets, a series of unforeseen meteorological and miscellaneous events had a direct negative impact on growth in the United States. One of which was that the US dollar appreciated suddenly, thus impacting not only their own economy but those countries who had accrued debt in US dollars. The horizon, though, is not all bleak for the US; the marked improvement of the credit data trend along with other leading indicators foretells a recovery in growth over the months to come.

In Europe as well, there are clear signs of recovery: the fall in oil prices, the euro’s depreciation and the decrease in interest rates. And thanks to the ECB’s bond purchasing program that was launched this past January in order to a) counter the risk of deflation, and b) reduce corporate interest rate spreads between Germany and Europe’s periphery, Europe is already beginning to witness both an increase in investors’ confidence and an increased risk appetite.

From a commodity perspective, oil prices have played an important part in boosting importers’ purchasing power and accentuating deflation expectations.

For more indepth insight and analysis on current market trends, watch this month’s Market Strategy video

1. Improving economic data for mature markets
2. First signs of success for the ECB’s QE program
3. The US dollar and oil prices
4. Our conclusion