Studio filmed by Rod Fitzgerald. Edited by Josh de la Mare.
Here's what we're watching with trading underway in London. The second quarter has begun and investors are still believers in the reflation trade. Global equities firmer, while in currency action, the rand is back under pressure. Still, as the calendar flips to April, a host of market-moving events confront investors. These include France's presidential elections and the opening salvos of the UK's divorce from the EU. But equity markets reflect the prospect of a sustained recovery in global activity, downplaying the risk of central bank policy surprises and the question of whether companies deliver better earnings growth.
Above all, investors will remain fixated on the Trump trade. Namely whether the administration can work with Congress and deliver on tax cuts and fiscal stimulus that have bolstered US and global equities since November. All told, investors still have cause to remain positive. But valuations, particularly in the US, are lofty. Hence the likelihood that the recent rotation that we've seen into EM and eurozone stocks only accelerates further in the second quarter.