QE expected to finish at year end
The European economy has proved a major disappointment this year. Investors started 2018 full of optimism.
Fixed income investors could face a challenging end to the year, as the combination of shrinking central bank balance sheets and still solid growth data could be a headwind for bonds.
Navigating a volatile market
Rate rises will be slower than predicted
Eurozone inflation eased back to a rate of just 1.1% in February. As in the US, there is some indication of a modest pick-up in wage growth, and this has in the past been closely associated with the rate of inflation in the service sector.