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The CIO office’s view of the week ahead.Last week was eventful, with Italian bond spreads rising sharply on the threat of fresh elections and then partially recovering when a government was eventually formed. We do not think that the crisis engulfing Italy has ended. After the summer, the new populist government’s unfunded fiscal plans could put Italian bond yields under renewed pressure. In spite of the downfall of Spanish prime minister Mariano Rajoy, there is less to worry about in Spain...
Read More »Weekly View, 18 October 2016
Weekly View Pictet Wealth Management’s near-term view on the economy and financial markets18 October 2016.Last week saw profit-taking on equity markets. Chinese export data unsettled Asian markets (the MSCI Asia ex-Japan fell 2.4% in local currency), but had no notable effect on developed markets (the S&P500 lost 1% in local currency while the Stoxx 600 edged up 0.1%). Cyclicals did better than defensives.A turnaround in earnings growth forecasts following several disappointing years...
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