China’s bullish signal
The Chinese authorities were in the spotlight this week, delivering a coordinated package of monetary and fiscal stimulus measures. While it is doubtful that these measures will suffice to lastingly revive Chinese activity, the signal they sent reassured the market (one less tail risk in the short term!). At the same time, the fall in oil prices continues to reduce the inflation tail risk, and the US economy remains solid. Will it be enough for risk appetite to be back until year-end?