Discussions surrounding tariffs and trade deals have been front-and-center news as of late, but European politics will be in the spotlight this week. With the resignation of Theresa May and Brexit uncertainty, the markets will be watching closely as EU leaders meet in Brussels to discuss new leadership following last week’s elections across Europe. With the exception of France as President Macron was dealt a setback by populists, the establishment held its control, albeit somewhat weakened.
Keep an eye on interest rates as U.S. bonds near 19-month lows and the market rally that started last year continues. With the 10-year Treasury below 2.3%, the yield curve is inverted out to 10 years. I would look to fade this market rally on a push lower in yields, most likely marking an intermediate-term low.
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