WHAT YOU NEED TO KNOW
- Despite the market optimism since the start of the year, we are maintaining our slight risk-off stance in the near-term with a preference for higher quality assets with more defensive characteristics.
- Central Banks reconvene this week with expectations that the Fed will likely return to a normal 25 bps hike, whereas both the ECB and the BoE are expected to lift rates by 50 bps.
- Last week, US equities outperformed the euro area, which has been positive for portfolios given our preference for the quality US market. This has helped portfolios post positive returns this year, with our exposure to quality-oriented investments a further tailwind.
