Risk sentiment mainly guided by the political developments – Lloyds Bank

In view of the analysts at Lloyds Bank, softer US economic data, including signals for inflation and Q1 GDP, delays in the administration’s pro-growth policy implementation and geopolitical tensions surrounding North Korea have continued to weigh on market risk sentiment.

Key Quotes

“The IMF, meanwhile, raised its global growth forecast for this year by 0.1%pt to 3.5%, but warned against the emergence of protectionism. Its forecast for UK growth in 2017 was raised from 1.5% to 2.0%. The pound has continued to outperform following the announcement yesterday by PM Theresa May that she will seek an early General Election in June. Media reports suggest that, based on current polls, the Conservatives could increase their majority to over 100.”