Markets Buoyed by Trade Softening, but Macro Weakness Persists

This Market Flash from Edmond de Rothschild Asset Management provides a timely assessment of how shifting U.S. trade rhetoric, led by the Trump administration, is impacting global financial markets and monetary policy expectations.

• Trade Policy Eases, Markets React: Hints of U.S.-China tariff reductions lifted equities and risk sentiment, although lack of confirmation from Beijing adds to volatility.
• Macro Indicators Show Strain: U.S. and European PMIs weakened, and companies are starting to consider passing higher costs to consumers amid slowing demand.
• Central Banks Signal Caution: The Fed remains hesitant on rate cuts, while the ECB keeps policy easing on the table as inflation decelerates.

Dive into the full report to explore how shifting geopolitical stances and macro signals may shape asset allocation in the coming months. Are your portfolios positioned for a possible policy pivot or prolonged economic softness?