Equities | Europe | FX | Global | Monetary Policy & Inflation
Markets to Watch This Week: US CPI and Potential Drama in Europe
- By Bilal Hafeez
- 3 min read
Market Moves
US equities staged a bounce. The largest moves were in tech stocks with the NASDAQ (+1.8 std-devs) now up +9.3% from the June -lows (Chart 3). The bounce came as recession fears dampened, sparked by better-than-expected PMIs and NFPs. The data also helped US credit spreads tighten 60.5bps (-1.9 std-devs). Still, I do not yet see a clear reason to turn bullish risk. I prefer to be underweight equities in my latest asset allocation piece. But on US sectors, John Tierney updated his view on commodity ETFs. He’s overweight in energy (with caution), marketweight in agriculture, and underweight in industrial metals.
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