US futures are nudging higher as the market bets the fed loses its nerve and downshifts anyway. Note the modern-day history book of Fed pauses is very bullish for stocks.
With bond markets “doubling down” on rate-cut bets and few lifelines in reach, the dollar continues to pay the prices for heightened policy confusion to solve a deposit confidence story that is extraordinarily vexing for US investors.
And with Powell and Yellen losing one of the biggest confidence games in history, US bank stocks continue to underperform European and Asian banks even with the ebb in volatility, which makes Europe and Asia a much safer bet; hence FX traders have been dialling for currencies most of the Asia session. Where the stronger Yuan should promote greater risk-taking locally, even…