Market Updates

BlackRock remain risk-on as expected Fed rate cuts, supported by a softening labor market, should aid U.S. stocks and the AI theme, while they turn neutral on long-term bonds given near-term yield declines but persistent structural pressures.

This week’s market focus is on major central bank meetings, with a likely Fed rate cut following weak US jobs data, while mixed economic signals from China and easing inflation in the US and Europe continue to shape investor sentiment.

Emerging market assets have gained this year, supported by a weaker dollar, stable macro conditions, and structural mega forces, though selectivity is crucial as BlackRock stay neutral on broad EM equities and favor local-currency over hard-currency debt.

This week’s focus is on key economic data from China, the US, and Europe—including inflation prints and the ECB rate decision—following last week’s weaker US labour market data that boosted Fed rate cut expectations, lifted equities and Treasuries, while China’s latest trade report highlighted slowing overall growth but resilient diversification and strength in high-tech exports.

This week’s focus is on a busy calendar of global data releases, including eurozone inflation, US jobs, and multiple PMI prints, alongside speeches from key central bank officials. Markets saw a mixed performance last week, with US equities slipping after tech-led gains, Treasury yields edging lower, oil rising, dovish Fed commentary emerging, and Chinese data showing tentative signs of industrial and manufacturing recovery.

Markets turn to a packed week of earnings, inflation data, PMI releases, and the Jackson Hole Symposium—highlighted by Fed Chair Powell’s keynote—after last week’s mixed US inflation signals, resilient retail sales, rising yields, and weak Chinese data underscored ongoing uncertainty

Mega forces are driving an uncertain economic transformation, prompting a shift from single-base forecasts to scenario-based investing, with private markets seen as a core allocation in all outcomes.

Market sentiment this week hinges on US-China trade developments, key inflation and retail sales data, and major central bank signals, following a week marked by dovish Fed comments, mixed earnings, falling oil prices, and contrasting economic signals from the US, UK, and China.

Risk assets are caught between strong U.S. corporate earnings driven by AI and the growth-dampening, inflationary impact of tariffs, with early signs suggesting both consumers and companies will share the cost—yet U.S. corporate resilience supports staying overweight AI and U.S. equities.

Markets kicked off a data-heavy week amid lingering trade uncertainty and mixed US economic signals, with central bank updates, softening global PMIs, and dovish Fed dissent shaping a cautious macro outlook.