Europe Peace Deal Rally
A diplomatic solution to geopolitical tensions in Europe is likely, which should improve the inflation backdrop.
Too little corroboration in the last 3 days to call a trend (2 articles). Watching for it to gain traction.
"Regarding the U.S. stock market, diplomatic negotiations have supported equities. Given the improving macroeconomic backdrop, Roach’s committee recently moved its recommendation to a 'tactical overweight' for equities."
"BofA Securities has also warned that higher oil prices from a longer conflict could put upward pressure on headline, core inflation and inflation expectations for the months ahead."
""While the geopolitical tensions in Europe represent a significant risk to the cycle, we believe that a diplomatic solution in 2H22 is likely and should improve the inflation backdrop.""