Traders will be looking at the latest Brexit developments, as well as the Fed's revised economic projections and dot plot while keeping an eye on the latest global PMIs for a sign of a reversal in the global slowdown.
"In the last few weeks I’ve come across a number of articles suggesting Europe is suffering from a new strain of the dread financial disease – Japanification. I think it’s the wrong diagnosis. Europe is suffering from something worse."
Global stocks hit a 5 month high, ignoring several negative development and enjoying a positive mood ahead of a week filled with potentially significant catalysts from central bank meetings, geopolitical developments and economic data.
...in essence, markets are no longer pricing risk; rather, a central command and control mechanism – global central banks – is pricing risk for the markets... this condition is neither durable nor stable.