19th June 2012

BlackRock: Weekly Market Views

It still feels that we are in a risk-off and very cautious environment; however the past few weeks have in fact provided slight respite, with a moderate recovery in many risk assets. Nonetheless, the conditions which drove risk asset prices down in the first place remain relevant – with Europe still an important focus.

There are three main problems in Europe: the ongoing recession, the increasing spotlight on Spain, and continuing political and economic issues in Greece. Looking ahead, euro tensions are going to persist until there are some meaningful policy measures taken to resolve the issues The G20 meeting and EU Summit coming up this month will therefore be a focus for investors. Officials have been downplaying expectations that there will be a major breakthrough at either meeting. However, it will be interesting to see if any progress is made to tackle the liquidity and economic growth challenges in the region, and most importantly if there are any steps towards altering the shape of the European monetary union.

Greek Election 

New Democracy, a pro-bailout party, won the most seats in yesterday’s Greek election. Although a government is yet to be formed, the news that a party which backed both of the country’s bailouts received the most votes has been greeted with relief by risk markets. Read Scott Thiel’s analysis. 

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Focus on Fixed Income 

Update on the fixed income landscape covering government and corporate bonds and currency moves. 

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Precious Metals Update 

Gold prices made steady gains this week as investors returned to the metal on concerns about the eurozone sovereign debt crisis and uncertainties ahead of Sunday's elections in Greece. 

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Update on Regulatory Developments: An Overview and Analysis 

This ViewPoint updates the 2011 BlackRock overview of the proposed regulatory initiatives that will have the greatest impact on investors. 

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Investments