US 10-year treasury yield reached a seven-year high of 3.12% on Thursday, reflecting market expectation of higher inflation and more interest rate hikes for 2018.
Oil price has been pushed over $80 a barrel, the highest since 2014, which is largely supported by US sanctions on Iran as well as the declining supply from Venezuela.
Italian populist parties 5-Star Movement and the far-right League have reached an agreement that will challenge the EU fiscal rules during discussion on a common policy agenda for a coalition government, which includes cutting taxes and increasing welfare expenditure.
UK CPI for April will be released on Wednesday May 23 and is expected to come in at 2.4 % YoY.
UK GDP growth will be released on Friday May 25, at an expected rate of 1.2% YoY.
A score of -1.0 indicates an extremely poor economic outlook, which is accompanied by a high probability of negative returns in risky asset classes like equities. The Risk Barometer tilts our portfolios away from equities during such periods.
A score of 0 indicates a neutral economic outlook with almost equal probability of positive and negative returns in risky asset classes like equities. The Risk Barometer maintains a balance between equities and other asset classes during such periods.
A score of +1.0 indicates an extremely positive economic outlook, which is accompanied by a high probability of positive returns in risky asset classes like equities. The Risk Barometer tilts our portfolios towards equities during such periods.
*as at latest realignment 15/05/18
The performance of each asset class is represented by certain Exchange Traded Funds available to UK investors and expressed in GBP terms selected by Copia Capital Management to represent that asset class, as reported at previous Thursday 4:30pm UK close. Reference to a particular asset class does not represent a recommendation to seek exposure to that asset class. This information is included for comparison purposes for the period stated, but is not an indicator of potential maximum loss for other periods or in the future.