Stocks believe in Trump - bonds are sceptical

Momentum in the stock market continued in March. The MSCI World global stock index in euro terms rose 0.5%. Additionally, the euro also strengthened against the dollar by 0.5%, as the stock market continued to deliver positive returns in March.

The stock market was characterized by violent optimism at the start of the month because of announcements from the Federal Reserve. Subsequently, optimism has slipped slightly in the background, especially in the bond market, where the steep curve of rising long-term rates relative to short-term rates, in the wake of the Trump election, gradually shrunk to around 10 bps (compared to a top-out of 25 bps at the end of December).