A Softer Fed Sets the Tone for Year-End Markets

Edmond de Rothschild’s weekly flash captures how a lighter policy touch in the US, shifting geopolitical signals in Europe, and selective resilience in Asia shaped the week’s market narrative. 

• A third consecutive 25bp Fed cut, paired with renewed asset purchases, lifted equities and pulled Treasury yields lower as Powell highlighted labour-market fragility.

• Europe balanced hawkish ECB commentary with signs of progress in Russia-Ukraine negotiations, while China’s export rebound contrasted with still-weak domestic demand.

• Credit spreads tightened as growth expectations improved and liquidity remained supportive, reinforcing a constructive backdrop for carry strategies.

For a closer read on how these cross-currents could influence positioning into year-end, the full flash offers a sharper lens on the week’s turning points.