A FED PIVOT IS THE MAIN JUICE POWERING RISK SENTIMENT
US equities were stronger again Thursday, with S&P up 0.6%, the second consecutive day of gains as recent banking jitters continue to ebb.
Financial conditions remain volatile, rendering medium-term cross-asset outlooks highly uncertain. Perhaps the only thing firming( BESIDES STOCKS is Fed rate cut expectations; for now, thoughts of a Fed pivot remain the main juice powering risk sentiment.
And the beat goes on in Asia as stocks are drifting higher again, with markets showing little concerns about inflation ahead of the US PCE released later in the day.
Naturally, the prospect of stricter lending standards has shifted the debate toward recession risk. And while markets are factoring a hit to growth, current price action suggests a recession is not imminent.
But in market life, things come at you quickly.
