Sentiment Up, Forecasts Down
Financial market sentiment has improved notably in recent days, buoyed by an unexpected pause in the US-China tariff war and the May 12 announcement of significantly reduced bilateral tariff rates. This détente has eased investor fears of a deepening global trade shock and sparked a rebound in risk appetite. Our charts this week focus on:
US shipping activity
The Blue Chip Growth Consensus
The Blue Chip Inflation Consensus
Global imbalances
US bank lending standards
Oil prices and inflation expectations
The skinny
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