Bassanese Bites: Mixed signals: Can the US avoid a hard landing? – April 11 2023
Global markets
Global markets were buffeted by bittersweet news over the past week: growing signs of a slowing in the US economy, but also encouraging signs of an easing in inflation pressure. The question remains the same – will inflation slow sufficiently quickly to allow the Fed to pivot and avoid a hard landing?
As it stands, the US S&P 500 is testing upside resistance at the end-January high of 4,100, while US 10-year bond yields are testing their lows of the year at just under 3.5%. Either this implies a fast drop in inflation is just around the corner, or one or both of these markets are wrongly priced.
