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Investment banks reassess recession woes
Markets continue recovery phase as stocks surge and the dollar recovers for second day in a row
Morgan Stanley asserts the US economy is not in a downturn despite market anticipation of Fed rate cuts after recent jobs data.
Most stocks rebounded as investors bought the dip, but Apple struggled after Berkshire Hathaway cut its stake by nearly 50%.
Oil prices slightly recovered after four days of losses: Brent near $76.66, WTI near $72.92. Reduced production at Libya's Sharara oilfield added to supply concerns.
FX
The dollar gained strength after fluctuating heavily over the last few sessions, while the Japanese yen fell reversing surprising gains from Monday.
The dollar hovered close to 103.18, while the USD/JPY steadied near 146.88, the euro kept close to 1.09233 while the sterling near 1.2703.
MS
Morgan Stanley cools market concerns by asserting that the US economy is not in a downturn although the market is aggressively anticipating Federal Reserve rate cuts after recent jobs data.
The investment bank predicts consumer growth to further slowdown from 3% in the second half of 2023 to 2% in 2024 reiterating that deceleration should cool down inflation.
Stocks
Most stocks rebounded after investors continued to but the dip. However, Apple struggled after Berkshire Hathway cuts stake by nearly 50% in Apples shares.
Nvidia leads in terms of rebound despite delays in new release of its Blackwell chip. Meanwhile Uber Technologies stock rose 11% as it exceeds analyst expectations for Q2 revenue.
Oil
Oil prices recover slightly after 4 days of consecutive losses. Brent was last seen hovering near $76.66 while WTI was near $72.92.
Reduced production at Libya's Sharara oilfield, which outputs 300,000 barrels per day (bpd), is further fueling concerns about supply shortages.
