MUFG’s Derek Halpenny argues that softer US labour data should push markets to reprice Federal Reserve policy, shifting from rate hikes toward a greater risk of cuts. He highlights weaker nonfarm payroll trends, deteriorating sentiment indicators and receding inflation risks.
MUFG’s Lee Hardman notes Fed Chair Warsh struck a less hawkish tone, with inflation expectations and risks having come down, and policy assumptions now based on no further Fed hikes.
US index futures advance during European trading hours on Monday as market sentiment rebounded on signs of easing geopolitical tensions. The Dow Jones futures gain 0.33% to trade near 52,400, while S&P 500 futures climbed 0.65% to around 7,450.