Markets prepared for temporary slowdown
– While growth is slowing down, we believe the markets and investor positioning broadly reflect this. Macro tail risks are generally low at the moment as Italian political tensions have eased and massive liquidity is giving support to risk assets. As we approach the summer, the US debt ceiling may raise uncertainty.
– Economic surprise indices have declined in all regions recently with the euro area and China seeing the biggest disappointments. Data may disappoint further in the short term but surprise indices are expected to edge higher during the summer.
Click here to read the full report: Economic Research
Danske Bank