From Macquarie:
Between ignorance & confusion Rapid sentiment reversal with incoherent signals…
The last several weeks witnessed one of the strongest reversals since the GFC. Following Brexit, the virtual implosion of the Italian banking sector and May poor payrolls, investors had to absorb a jump in Jun payroll and full panic mode by CBs, including: (a) flagged BoE easing; (b) a potential Japanese “helicopter drop”; (c) growing calls for public recapitalization of Euro banks; (d) easing by a plethora of countries; and (e) acceptance that Fed cannot tighten.
