Market Comment | Peripheral risk premia widened

Summary

Investors are cautious ahead of central banks meetings. Peripheral risk premia widened, particularly in Italy as chances of snap election heightened given the standoff between coalition partners, while oil gained amid rising tensions.

Key points

• Key points:
• Bets of an aggressive rate cut of 50 bps in U.S. have waned.
• Oil gained amid rising tensions in the Persian Gulf.
• The pound slipped driven by a higher possibility of a no-deal Brexit.

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