Non-financial risk aversion’s fading impact
To many investors February 27th was probably one of the most significant days to be ‘risk averse’ on the back of geopolitical risk only. Headlines on this front were plentiful, but not only was the price impact limited, but also the duration. What’s more, none of the key geopolitical drivers seemed ‘at risk’ of being resolved anytime soon, but markets gradually priced out fears. Many factors are in play, but we suspect the power of G3 policy expectations – in favour of easing – is proving ever-dominant.
Read the full report: UBS