Notes from the Trading Desk – Europe

Those expecting a sleepy August for equity markets were probably shocked at the volatility we saw across global equity markets last week, as weak macro data and US Treasury yield‑curve inversion raised recessionary fears. In addition, the prospect of a fresh election in Italy also rattled brittle investor confidence. Markets did steady towards the end of the week, and with that, the moves on the week ultimately turned out to be less severe than early on.