Equities are resilient before US CPI - Our Weekly Cross Asset Views

As the US shutdown extends and US macro data remain scarce, investors have been showing more hesitation and some reluctance to add to their biggest momentum trades. Gold has been the surprise of the week with a significant and unexpected drop on Tuesday.However, the corporate newsflow continued to deliver significant upward surprises – especially in the US - sustaining global equity optimism, despite some disappointments (Tesla, Netflix notably).After the US September CPI (delivered today), next week will be busy in terms of newsflow: maybe the Trump/Xi meeting with hopes for a trade deal, the Fed/ECB/BoJ meetings, and earnings reports of 5 of Mag7.  The combination of a lack of US hard data and some key announcements probably warrants some tactical caution.In the medium run, still, we keep our bullish equity vs bonds views, as we believe that fiscal dominance and AI momentum will continue to prevail.