Rapid U.S. policy shifts—ranging from tariff decisions to potential tax cuts and regulatory reforms—are boosting investor sentiment and support an overweight in equities, while persistent inflation and deficit worries keep long-term Treasuries underweight.

Markets enter a key week with the ECB Forum and US jobs report in focus, as central banks weigh weak data, tariff risks, and mixed global signals—while easing geopolitical tensions and dovish Fed commentary have boosted risk appetite and raised expectations for rate cuts.