Where's the risk? - Westpac
|Analysts at Westpac explained that it’s hard to read which way the risk winds are blowing.
Key Quotes:
"On the plus side the BoJ’s decision to target 10yr JGBs around zero should be a boon to carry. The Fed may have signaled they’re on the verge of hiking but it’s hard to see Dec hike probabilities rising much from the current better than even chances either, certainly not with 14 Dec 2 ½ months away.
Trump risk appears to have eased too after Hillary Clinton’s strong showing at the first presidential debate. All together the base for a run up in risk sentiment seems to be in place. But against that one needs to weigh ongoing concerns about the health of the European banking system and the potential for an anti-establishment rebuke against Renzi at Italy’s referendum (4 Dec)."
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