Central banks across the globe had a busy week with policy meetings in the U.S., U.K., Japan and Russia to name a few; divergence in global policy continues to play out as the Federal Open Market Committee of the United States raised its Federal Funds target range 25 basis points and the remaining banks of the world either left targets in check or cut them further. Tomorrow the second round of French parliamentary elections take place in which new President Emmanuel Macron’s party is expected to win majority and Brexit negotiations are set to begin on Monday of next week, marking a historic and sure to be well monitored two year affair.

The U.S. large company stock index closed within 0.5% of yet another all time high this week adding a marginal 0.1% compared to the prior. Technology stocks as a whole ended the week lower after last’s major selloff and the index was drug down by food retailers declining 5.1% on news of Amazon’s agreement to buy Whole Foods. Little movement came out of developed international markets following the expected policy announcements although emerging market stocks declined. Fixed income performed during the week as longer term interest rates remain at depressed levels against rising short term rates. Continuance of this flattening interest rate path would lead to inversion of the yield curve.

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