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23 Feb 2016
Market sentiment shored up by better data – Goldman Sachs
Research Team at Goldman Sachs, suggests that the better data on consumer spending in the US and Europe, alongside policy stimulus, have shored up market sentiment.
Key Quotes
“Our economists expect the ECB to ease monetary policy further on 10 March, and the Fed to wait until June before hiking again.
We think rates and credit markets, in particular, price a too gloomy outlook for nominal growth: we look for steeper curves and tighter IG spreads on a 3-to-6- month period.
Near-term risks include: ongoing gyrations in WTI; uncertainties around the application of the BRRD in Europe; and the range of instruments the ECB will adopt to deliver incremental easing.”
Key Quotes
“Our economists expect the ECB to ease monetary policy further on 10 March, and the Fed to wait until June before hiking again.
We think rates and credit markets, in particular, price a too gloomy outlook for nominal growth: we look for steeper curves and tighter IG spreads on a 3-to-6- month period.
Near-term risks include: ongoing gyrations in WTI; uncertainties around the application of the BRRD in Europe; and the range of instruments the ECB will adopt to deliver incremental easing.”