MARKETS
It sums up the state of the market ( which remains utterly rates dependent) when receding recession risk is bad for stocks, not to mention progress on inflation has been faster than most had expected. And while far from uniform, the current takeaways are broadly affirmational of a healthier macro backdrop.
However, as we move through this post-pandemic spin dryer, investors are beginning to appreciate that every economic data point will be a short-term sea of change unto itself. They likely think it's best to keep risk balanced for the book to remain on an even keel while navigating the next run of choppy seas, at least until the Fed gives up the "higher for longer" plot.
While we remain very upbeat on global markets, at current levels of valuation and risk premium, especially after the latest grab for length, I think investors are hopeful but probably still wary of the enthusiasm to chase markets post-outcome and post-event
ASIA FOREX
While local investors wait for US yields to at least stop risking and hopefully head south again, in Asia FX, the lack of a "carry factor" is presenting itself to be an issue even for those currencies that benefit from China export linkages. Indeed the lack of carry in a higher US rates environment might be holding investors back even though the China reopening picture looks bright.