The financial system has taken a small but noticeable exhale, most notably in the U.S. with equities and bonds rebounding from their June lows.
Some are calling this a pivot party, with the prospect of softening inflation data and, therefore, interest rate expectations placing a temporary floor under asset prices.
Bulls & Bears
Recent financial market developments have many investors understandably nervous.
Tackling price inflation through higher interest rates has become a global phenomenon. Tighter than expected financial conditions indicate a meaningful economic slowdown, and recent equity market weakness reflects this.