Markets continue to look for clarity but find further muddled outlooks for current global macro questions. Greece has emerged again as a potential flash point, and the risk of "grey scenarios" is substantial.
Meanwhile, a surprisingly soft US Q1 GDP number, showing only 0.2% growth, also pushed near-term expectations a bit lower for Q2 GDP as well. Still, the Federal Reserve did not signal a different path at their most recent FOMC meeting, leaving unchanged expectations of a Sept rate hike, but with growing risks of a longer wait.
Meanwhile, China no longer serves as a reliable robust growth engine, has been surprising the markets with stimulus measures, and is likely to continue to do so over the remainder of the year. And politics will remain problematic, as the UK looks ahead to a potentially inconclusive election in May.
"Elevated volatility is sticking around, although our core macro views of stronger US recovery, a higher USD, and higher US yields have not changed." says BofA Merrill Lynch in a report
