Video: Risk Heats Up after IMF Downgrades and Ahead of ECB

Talking Points:

• The IMF downgraded its 2015 and 2016 global growth forecasts - with the US a notable exception

• Lower growth potential has leveraged expectation (and perhaps dependency) of QE from the ECB

• Key event risk is ahead with BoE Minutes, the ECB decision and next week's Fed meeting

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Is a dimmer view of economic activity supportive of the capital markets? We would think so looking at equities and the Yen crosses this past session in the wake of the IMF downgrades. The response is less likely due to the economic potential and more about stimulus expectations and hopes. This rebound is tangible, but its conviction is flimsy at best. How far can this risk move run and what kind of market impact should we expect from the event risk on the docket? We discuss this and more in today's Trading Video.

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