Equities carry over the ebullience to spring

European indices higher, US futures point to gains

  • Eurostoxx +0.4%
  • DAX +0.4%
  • S&P 500 futures +0.4%
  • Nasdaq futures +1.0%
  • Dow futures +0.1%

Q1 was another great quarter for equities in general and things are starting off well in April so far with European stocks holding slight gains, with the DAX keeping above 15,000, and US futures also pushing higher during the session.

As we greet Q2, the market will once again look over to the bond market for more clues in the bigger picture and the key question will be whether or not economic data will back up the reflation narrative established so far to start the new year.

If there are limited and tepid signs of inflation or economic conditions running hot, there is a good argument for there to be a general pause in the reflation trade and that has wider repercussions to the broader market moving forward.

But for equities, this might still lead to more of a Goldilocks scenario in the sense that monetary easing will be prolonged as the global economy slowly gets back on its feet.

I mean, let’s not forget..

Powell

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