From BlackRock’s Weekly Market Commentary, in summary:
More volatility ahead
- We think the U.S. debt limit showdown will spark renewed volatility in markets.
- That risk reinforces why we stay invested and cautious by going up in quality.
Market backdrop
- Stocks were flat last week after U.S. data confirmed core inflation staying high.
- We think sticky inflation makes Federal Reserve rate cuts later this year unlikely.
Week ahead
U.S. industrial production and business survey data due this week should gauge how the Fed’s rate hikes have hurt industrial and business activity.
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So far US equity market volatility has not gone nuts over the debt ceiling hype. there is still time I guess.
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BlackRock’s view on stocks:
