Overnight Market Review (2022.7.29) The poor performance of US economic data overnight, superimposed on Powell’s dovish speech the day before, made the market firmly believe that the Fed may not continue to aggressively raise interest rates if the economic recession is coming.
However, CICC believes that “the economic slowdown is not enough for the Fed to stop tightening. With the deepening of interest rate hikes, the pressure on the U.S. economy will increase in the second half of the year. In general, the U.S. will continue to face “weak data and tight policies.” “Dilemma.”
Data on Wednesday showed U.S. gross domestic product grew negative for two consecutive quarters, entering a so-called technical recession. Markets are betting that the Fed may be less aggressive in raising rates.
Trading strategy deployment: it is recommended to do more at low levels
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