It has been apparent in recent years that the market is more interested in central banks than economic data. Now it appears to be ignoring geopolitical events - even an event as significant as the UK's decision to quit the EU. Is this a sign that the market has become over-reliant on the world's central banks as a cure for all ills? And, central banks notwithstanding, is the market correct in its assessment of a Brexit impact on the complex web of interdependencies that is the global economy?
It has been a lousy few years for the relationship between economic data and financial markets. Whether data is strong or weak, the markets have pretty much ignored it. All the market seems to really care about is what the central banks are going to do. But at least the economic data has company to share its misery: the market now seems to be ignoring geopolitical events as well.
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