Will volatility increase ahead of Brexit vote?
Director, Client Investment Strategies Mark Eibel joins host Communications Manager Alexandra Davis on this week’s market update to discuss volatility in Europe, as the European Central Bank began its corporate bond purchase program and the German bund yield hit a record low on Friday, commenting that investors should expect ongoing volatility until the Brexit outcome is announced June 23.
Shifting to the higher oil prices this week, Eibel discusses why this trading range for oil makes more sense given the laws of supply and demand are showing themselves again. He says recent world events impacting supply have moved the price up, while the demand side has stabilized, leading to a supply and demand relationship where everyone wins.
Eibel concludes this week’s market update noting the upcoming FOMC meeting on June 15. He cautions investors to keep their eye on the Federal Reserve (Fed), but since a Fed rate increase now seems off the table in June given recent U.S. jobs numbers, he believes the Brexit vote is the main watch point for global markets over the next couple weeks.