Economic overview and summary of our asset allocation decisions – March 2017

In the markets

• While markets do not appear to be pricing in the uncertainties surrounding Trump’s presidency, the same cannot be said for euro assets, which were generally the laggards over the month as a variety of political risks weighed on market sentiment

• Elsewhere, Asia and emerging market equities also continued to benefit from the positive market sentiment over the month. Credit and high yield bonds also did well, while solid returns for government bonds and precious metals reflected investors’ desire for quality and safety

• The US dollar finished the month strongly, as market expectations shifted towards a sharper reduction in accommodative monetary policy from the US Federal Reserve (Fed)

Chart of the month

In this month’s chart of the month, we highlight the increased spread between 10-year German bund yields and 10-year French OATs (Government Bonds).

Read March’s market and economic update

Our full market and economic update explores the above topics in further detail. You can read it here today.