Beyond Bulls & Bears

Notes from the Trading Desk – Europe
Equity

Notes from the Trading Desk – Europe

Improving macro data and continuously dovish central banks have kept equity markets well supported. Given the push and pull, the market continues to react to specific headlines and announcements, rather than the reopening trade as a general theme.

Notes from the Trading Desk—Europe
Equity

Notes from the Trading Desk—Europe

Last week saw stabilisation in European government bond yields, which in turn, led to rotation back into some of the more recent losers, and defensive stocks. Alongside this, the reopening trade was firmly in play.

Notes from the Trading Desk—Europe
Equity

Notes from the Trading Desk—Europe

Last week, volatility in bond yields remained a key driver for equity market sentiment. In particular, mid-week commentary from US Federal Reserve (Fed) Chair Jerome Powell was a key talking point.

Notes from the Trading Desk—Europe
Equity

Notes from the Trading Desk—Europe

There is a clear ‘push and pull’ in markets at the moment between better-than-expected macro reports, unprecedented levels of stimulus, and a potential end to COVID-19 lockdowns vs. stretched valuations and concerns of the impact of interest-rate increases.

Notes from the Trading Desk—Europe
Equity

Notes from the Trading Desk—Europe

Governments across Europe are trying to keep a lid on reopening optimism for now. The extent of the second wave of COVID-19, especially in the United Kingdom, Belgium, Italy, Austria and most of Eastern Europe, serves as a reminder of how this virus can spread if governments fail to strike the correct balance between managing social interaction and enabling economies to function. However, the difference between now and pre-second wave is the effective vaccination programme in motion across Europe.

Notes from the Trading Desk – Europe
Equity

Notes from the Trading Desk – Europe

The United Kingdom remains far ahead of its European counterparts in terms of vaccination progress, which has helped sentiment. It is also encouraging to see new COVID-19 cases fall sharply in the United States, and the vaccination programme continues to make good progress with over 1 million people there being vaccinated per day.

Notes from the Trading Desk – Europe
Equity

Notes from the Trading Desk – Europe

Global equities were stronger across the board last week. Improving sentiment around vaccination programmes, as well positive developments in Italian politics, were the focus in Europe, while in the United States, stimulus hopes boosted markets.

Notes from the Trading Desk—Europe
Equity

Notes from the Trading Desk—Europe

Last week was certainly an interesting one for markets as the GameStop/Reddit/Melvin saga dominated headlines and led to volatility and deleveraging. It was also a big week for corporate earnings, with a number of US heavyweights reporting.

Notes from the Trading Desk—Europe
Equity

Notes from the Trading Desk—Europe

COVID-19 and the economic impact of prolonged lockdowns continues to be a driver for Europe’s markets. However, many market observers remain positive on economic outlook, particularly in the United States.

Notes from the Trading Desk—Europe
Equity

Notes from the Trading Desk—Europe

The proposed US$1.9 trillion fiscal package announced by President-elect Joe Biden was the key focus for the United States, whilst in Europe, politics and the continuing fight against COVID-19 held investor attention.

Notes from the Trading Desk—Europe
Equity

Notes from the Trading Desk—Europe

Franklin Templeton’s Notes from the Trading Desk offers a weekly overview of what our professional traders and analysts are watching in the markets. The European desk is manned by eight professionals based in Edinburgh, Scotland, with an average of 15 years of experience whose job it is to monitor the markets around the world. Their views are theirs alone and are not intended to be construed as investment advice.