Compared to the recent flood of data (both macro and micro) this has been a lighter week - the low volatility period between the FOMC and CPI - but even Goldman Sachs head of hedge fund coverage, Tony Pasquariello admits in this latest note to clients that:
"If you asked me to define the local market narrative, I’d struggle to give a clean answer.
While one could argue the reflation trade of April has given way to a soft landing trade in May, I’m not so sure the current dynamics fit into a tidy bucket. "
In reality, Pasquariello points out that the market has been seesawing from theme to theme, only to trade the same levels that have confined US equities for the past two months.
