The ‘meme stock’ phenomenon was back with a bang this week
Key points
- An in-line US CPI release brought relief to markets and helped a risk asset rally.
- Evidence of slowing consumer demand notwithstanding, additional data will be required before the FOMC is likely to start cutting rates.
- Expectations are that a June cut by the ECB is a done deal.
- Inflation data in the UK remains high, dampening enthusiasm for rate cuts.
- As risk assets continue to rally, we think it appropriate to maintain discipline and look to reduce exposure on strength.
