Potential of Increased Near-Term Volatility; Medium-Term Outlook Remains Bullish

Here's What We're Thinking

March 7, 2017

Markets will have to digest a flurry of important event risk and developments over the coming couple of weeks including February U.S. labour data (3/10), a Federal Reserve interest rate policy meeting (3/15), Netherlands’ national election (3/15), Pres. Trump’s budget submitted to Congress as well as negotiations over debt ceiling (Mar. 16), UK could invoke Article 50 triggering Brexit negotiations & European summit (3/9-10), China NPC & economic policies/targets (3/9), G20 finance officials meeting (Mar. 17-18), and a Trump/Merkel meeting (3/14). Of particular importance, FOMC members have been suggesting that the committee is ready to hike rates next week, a signal that investors’ confidence in an improving economy is well-placed (the market has priced in a full rate hike).

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