Market review- fundamental perspective- 30 March 2018

Capital Markets in April, 2018
For the best part of 24-months, equity markets have rallied steadily, matching the longest winning streak ever without a correction. That period ended abruptly in February when global stock indices tumbled into a correction brought on by worries about higher interest rates and exacerbated by complacency and a new threat of ‘trade wars.’
The prospect of a trade war extended the volatility into March and may watch over market sentiment for months to come, potentially sending ripples through the delicate negotiations over NAFTA and BREXIT.
Further, the threat of a wider trade war or even any confrontation with N. Korea could derail G10 central banks from returning to a normalized interest rate policy. Investors can expect these ongoing geopolitical challenges to dictate market direction for the foreseeable future.
Central Banks Monetary Policy decisions for April 2018:
3-Apr AUD Australia Reserve Bank of Australia
11-Apr THB Thailand Bank of Thailand
11-Apr PLN Poland National Bank of Poland
12-Apr MXN Mexico Banco de Mexico
18-Apr CAD Canada Bank of Canada
24-Apr HUF Hungary Central Bank of Hungary
26-Apr SEK Sweden Sveriges Riksbank
26-Apr EUR Euro area European Central Bank
Interest rate differentials will continue to dominate forex moves in H1. The Fed and other G10 central banks have waited patiently to begin to get out of their extraordinarily accommodative stance and finally normalize monetary policy. After a decade of near- or sub-zero rates, central banks are entering the era of ‘quantitative tightening.’

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