Will Powell come to the party
With a small break in the onslaught of bad news on trade barriers and talk of anti-trust investigations, US equities rebound from their recent sharp falls. US yields are also off the deck, but the market is sending out invitations for a rate cut party, and waiting for the Fed to turn-up. Fed Chair gave just enough hint that he might turn up, but he is still reluctant to acknowledge that risks to growth have increased. Lower US yields and hopes of rate cuts have shifted the tone from a strong dollar to a weak dollar, and this may continue for the time being. PMI data for the US from Markit have fallen sharply already pointing to weak US growth, running now below the Eurozone. With some mixed messages from US data, payrolls data on Friday may take on even more significance.
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