Momentous politics unmoved markets
- In the US, the Trump Twitter-feed has been active on the Russian question. German Chancellor Merkel, whose country was described as "bad, very bad" by US President Trump, has suggested that Europe may not be able to rely on the US. North Korea has fired a ballistic missile. Markets basically have ignored it all.
- US Fed President Williams believes three is a magic number when it comes to rate increases this year (in total). A June rate hike is widely expected, but it is the nature of the quantitative policy plan that offers the most interest.
- ECB President Draghi is due to speak today, and it seems rather unlikely that his addiction to easing will be challenged. However, it is not necessarily clear whether Draghi's dovishness represents the ECB's views, and the central bank may shift tone this summer.
- In the UK, the weekend opinion polls showed the Conservative Party's lead reduced, but not as drastically as some of last week's polls had suggested. The prime minister and the leader of the opposition are being interviewed today.