Natixis - The worrying reversal of three factors that have underpinned financial markets since the end of 2016

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Natixis

Patrick Artus

The worrying reversal of three factors that have underpinned financial markets since the end of 2016

It is worrying that three factors that have sustained financial markets since the end of 2016 are being reversed: The marked recovery in global trade has driven exports and growth, and it is now being threatened by protectionism; The low risk aversion linked to the disappearance of political risk in Europe due to the election of Emmanuel Macron has now been replaced by high risk aversion; The abundance and vigorous growth in global liquidity that have underpinned financial markets will gradually turn into a stagnation in global liquidity. The simultaneous replacement of the boom in global trade by protectionism, low risk aversion by high risk aversion and strong growth by a stagnation in global liquidity will definitely have a very negative impact on financial markets.

06/08/2018 5 EN

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Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

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Analysts

Patrick Artus

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The worrying reversal of three factors that have underpinned financial markets since the end of 2016

Japan: Macro and geopolitics brew winners in industrials, IT and financials

Section 899: A tool to increase revenue or to change foreign tax policy?

ECB Takes Summer Pause to Preserve Monetary Policy Flexibility

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