Markets brace for 3 key risks

ASSET markets face three key risks in coming weeks:

Markets sideways ahead of Super Wednesday

Risk asset markets traded nervously sideways for most of last week as the focus zoomed in on this week's so-called Super Wednesday meetings of the Fed and the BOJ. The MSCI All Country World index traded in a narrow sideways range, ending the week 0.9 per cent lower. The S&P 500 finished the week on a positive note, gaining 0.53 per cent. The MSCI Emerging Markets closed lower by 2.63 per cent (Figure 1). The US Dollar Index gained 0.81 per cent.