Although the extension of the UK's exit from the EU has prevented an immediate hard Brexit, it also represents a prolonged uncertainty for the capital markets. How the exit from the EU is to be implemented remains unclear, however, and the fronts in the British parliament have hardened. The relief on the markets could therefore only be of a very short nature.
The minutes of the US Federal Reserve's last monetary policy decision on March 20 confirmed the Fed's wait-and-see attitude. There are still "significant uncertainties" in the economic outlook, and latest US inflation data will probably not put pressure on the Fed to raise key interest rates again in the near future. ECB President Mario Draghi continues to see growth risks for the euro zone and recent economic data have confirmed that the pace of growth in the euro area is slowing. Nevertheless, the likelihood of a recession remains low.