Ulrike Hoffmann-Burchardi, CIO for the Americas and Head of Global Equities for UBS Wealth Management, discusses recent macroeconomic data, noting that better-than-expected housing starts, GDP, and PMIs could lead to fewer Fed rate cuts than anticipated, though equities are still expected to rise. She highlights a market "rhyme with 99" due to transformational innovation and similar Fed comments on equity valuations, citing NVIDIA's investment in OpenAI as an example. While Bitcoin's recent decline is noted as a potential short-term signal for equities, Fed Chair Powell's speech and new tariffs are dismissed as noise. The upcoming non-farm payroll report and the looming government shutdown are identified as key events for the week, with a shutdown potentially weakening the employment picture and cementing an October rate cut, while an averted shutdown is expected to show a slackening labor market despite a seasonal bounce in payrolls.
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