Citi Wealth Insights

In Japan, approval rating for the Abe administration looks unlikely to turn around any time soon. Sterling reacts to Brexit volatility as tensions escalate around the topic of the EU Customs Union (CU).

Current PMI levels still suggest healthy growth in GDP and EPS. Citi analysts view market pullbacks as opportunities when PMIs remain above 50.

Although the US’s protectionist stance has added to recent market volatility and elevated trade risks, Citi analysts believe that a full-fledged trade war is unlikely because China has already embarked on a policy path to reduce imbalances.

EUR closed the week below 1.23 following headlines the ECB is said “to have had no talks on rate path after QE” and “sees scope to wait for July to signal QE end”.

Challenges ahead of Brexit talks over Britain’s future trading relationship with Europe.

A renewed investor sell-off in commodities could have significant negative consequences for commodities prices, not just across the board, but particularly in oil.