US NOV FLASH MANUF PMI 48.8 (FCST: 48.9); OCT 48.5

MNI:Largest Canada New Home Price Dip Since `09 Led By Toronto

CANADIAN OCT FLASH RETAIL SALES +0.7%, 4TH STRAIGHT INCREASE

MNI China Daily Summary: Friday, November 22

MNI: PBOC Net Drains CNY345.9 Bln via OMO Friday

MNI BRIEF: Fed Should Explore Central Clearing At SRF-Hammack

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

EZ/UK Bond Supply Calendar: Gilt Syndi; IT, EU Due Monday

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL NOV INDEX 71.8

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

FED: Powell's Time Looks Up, Replacement Could Be Less Willing To Cut Rates?

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

JPMorgan: Powell Reappointment Reduces Uncertainty

CROSS ASSET
  • Chair Powell's reappointment reduces uncertainty, and hence should be a positive for risk assets. Historically, markets try to test new Fed Chairs, so JPM believe this outcome will be avoided.
  • Additionally, Powell's experience from 2H18, where policy tightening contributed to the strong market selloff into year-end, will likely result in a cautious approach to the Fed's liftoff next year.
  • Easing US-China tariffs are a potential non-consensus equity tailwind, particularly for Cyclicals and Small Caps, boosting growth on both sides and helping moderate inflation.
  • JPM see global yield curves re-steepening as the growth outlook improves, which supports their thesis of internal rotation toward Cyclicals and Value. They stay short UST duration given rich valuations, along with scope for rising term premia to boost interest rates at the long end.
  • In FX, JPM see scope for differentiation in EM, where they UW ZAR and TRY that appear vulnerable to rising core yields, but stay OW RUB given strong terms of trade and OW CZK.
  • They also buy CAD vs EUR, based on the relative normalization path and commodities exposure in CAD.
EM BulletFixed Income BulletsHomepageCommoditiesEquitiesBulletJPMorgan Market News Emerging Market NewsForeign Exchange BulletsMarkets
EM BulletFixed Income BulletsHomepageCommoditiesEquitiesBulletJPMorgan Market News Emerging Market NewsForeign Exchange BulletsMarkets

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.