By Naomi Rovnick and Lucy Raitano
Investors in London (Reuters) -big are mobilizing to negotiate weeks filled with joker events which can break calm on the stock markets and lead large swings for the assets they consider to be exposed to positive or negative surprises, from gold to company credit.
US Treasury bills, the debt of the dollar, yen and the euro zone could also become volatiles, said investors, data on US jobs on Thursday are followed by the American US Union of Crunch’s union of next week, then an unpredictable French budget vote. After that, the markets face a deadline of August 12 for American-China talks to conclude a trade agreement.
“I cannot think of a period of my history on the markets, which is quite long, where you have had so many risks and so few risk premiums,” said April Russian, responsible for investment in investment, referring to remuneration to hold risky assets on species.
Here is an overview of the way investors play potential outbreaks on the market in the days and weeks to come.
Price tremors
Russell Investments, the head of the solutions strategy, Van Luu, said that market participants evaluated a slightly positive result on July 9, the United States and the EU were preparing for 10% universal rates or postponing a resolution, as the United States has done with China.
It had become negative on business credit because yields underestimated the economic risks of continuous pricing uncertainty, he said.
With Brussels who are now pressure for exemptions for the EU export sectors, the worst case was a dead end and the markets beginning to fear reciprocal prices, he said.
Amundi Global, head of Macro Mahmood Pradhan, former assistant director of the IMF for Europe, said that the result of July 9 was a coin, but a Benin result was already evaluated in risky active ingredients.
Global shares have rebounded and increased by 24% from a hollow of April 8, shortly after US President Donald Trump delivered his “liberation day” on April 2, the prices bomb on imports from all over the world.
“Given the rally we have had, there may not be up to the increase,” said Pradhan.
Dollar, treasure, gold
Any result on July 9 could hit the dollar and have flourished the volatility of cross-money, investors said. The greenback is already down 10% against other important currencies so far this year.
Treasury bills would suffer if the talks collapsed in a threat to world trade, said Liam O’Donnell, head of the Artemis fixed income strategy. A long and constant accumulation of treasury bills by foreign investors and central banks was partly motivated by the dominant position of the dollar in world trade flows.
