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Here's what we're watching, with trading underway in London. European equities have hit the buffers after Wall Street and Asian equities set a robust pace overnight. Two days of gains basking in the afterglow of Sunday's first round of voting in France is enough for now, say equity investors in Europe. They've certainly got good reason, because they're now casting a wary eye ahead to upcoming central bank meetings. Sweden's policymakers meet tomorrow before Mr. Draghi and his cohorts provide the latest tidings from the ECB.
Now, for all the languor we're seeing in Europe, we do see the FTSE All-World Equity Index at an all-time high as Wall Street eyes record territory for the S&P 500. The NASDAQ is also expected to push further beyond the 6,000 mark, ahead of big tech earnings arriving. With the Trump administration outlining tax reforms later, US small cap stocks also loitered just shy of record territory.
Now, there are plenty of doubters, but the Trump trade or the reflation trend has flared anew. Bond yields and inflation expectations are rising, while volatility is sliding, particularly for US and Eurozone equities. All good news for equity investors.