Here is what happened in the Capital Markets this week.
The Weekly Bottom Line (please click link to open)
The Weekly Bottom Line, courtesy of TD Economics, includes a review of market performances, recent key economic indicators, a calendar of upcoming key economic releases, and other relevant data. The highlights from this week’s report include:
· The Fed’s dots showed that it only expects to hike rates once more by the end of 2020, sending Treasury yields lower mid-week.
· On Friday, weakness in March manufacturing surveys in Europe, Japan, and the U.S. sent longer-term U.S. yields low enough to invert the yield curve. A yield curve inversion has historically preceded a recession by up to eight quarters.
· In a separate drama, the UK has earned a two-week extension on its Brexit deadline to April 12th. It remains to be seen if the UK’s parliament will pass the current deal reached with the EU, and so further cliffhangers are likely.