What factors are driving global market dynamics? – Deutsche Bank

Analysts at Deutsche Bank find that over the past 6 months, oil prices have been the main variable capturing global market dynamics.

Key Quotes

“The other key variable capturing market dynamics is US 10Y yields. The importance of US rates is unsurprising, given that it captures Fed policy dynamics and US tax reform expectations; US rates are also a key driver of the broad dollar and of global risk sentiment. Lastly, EM equities – which likely reflect broader risk sentiment. Together, crude prices, US rates and EM equities capture the bulk of the global market dynamics.”