Axel Botte, strategist at Ostrum AM (Natixis IM), points out that the markets are entering the second quarter with a bang and that the new encouraging economic indicators have driven the recovery of risk. However, he warns about the lack of fiscal action that prevails in Europe.
Led by the United States and China, the global economy appears tobe set for a significant acceleration, write Guy Wagner, CIO at BLI – Banquede Luxembourg Investments, and his team, in their monthly analysis, ‘Highlights’.
Even prior to the COVID-19 pandemic, growth and inflation were broadly subdued. Growth stood below measures of potential output in countries such as Brazil, Mexico and South Africa.