Economic data: Sentiment amongst both analysts and corporates is likely to have dipped in Germany and analysts look for the ZEW index and Ifo business climate to decline in May. US core inflation is expected to have held at 1.8%, and thus remain below the Fed's
target.
Bond market: Bunds appear to be stabilising following the sharpest crash in recent decades. However, markets look set to remain volatile in coming weeks and it is recommend keeping duration risks low for now.
FX market: Near-term fears regarding the US economy have not abated this week. Next week, all eyes will be back on inflation data. The higher the release, the better for the greenback. In Japan at least a slight increase in inflation is expected.
Equity market: Against the backdrop of usual seasonal headwinds, analysts look for the DAX to move sideways until the autumn but recommend that investors use periods with the DAX below 11,000 to increase exposure in the coming months.
Commodity market: Cyclical commodity markets remain buoyant for now with market players looking through current over-supply on the oil market. Whilst base metals markets are ignoring poor Chinese economic data, further deterioration in Chinese business
sentiment has the potential to derail the rally.
