Market Review June

  Lab assistant sets fire to rates

The European elections have set things alight. Emmanuel Macron's decision to dissolve the French National Assembly is creating a great deal of uncertainty about the future distribution of MPs. French rates are therefore under pressure, as is the EUR. The CHF appreciated over the month. A strong CHF is weakening the export capacity of Swiss industry and will have prompted the SNB to cut interest rates for the second time this year.

In the end, equities held up relatively well in the face of this news, posting decent performances. The United States is the best market in this situation.

Swiss bonds made considerable progress, but now offer fairly low yields to maturity on long-term yields.

Gold is stabilising, while oil is falling, reflecting emerging fears over the forthcoming elections.

The risk indicator is in the medium-risk zone. The financial sub-index is seeing its risk increase significantly.

MAIN performances

XO Risk Aversion Index - Composite 250D

XO Risk Aversion Index - Components