From BlackRock's Weekly Market Commentary, in summary:
More volatility ahead
- We think the U.S. debt limit showdown will spark renewed volatility in markets.
- That risk reinforces why we stay invested and cautious by going up in quality.
Market backdrop
- Stocks were flat last week after U.S. data confirmed core inflation staying high.
- We think sticky inflation makes Federal Reserve rate cuts later this year unlikely.
Week ahead
- U.S. industrial production and business survey data due this week should gauge how the Fed’s rate hikes have hurt industrial and business activity.
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So far US equity market volatility has not gone nuts over the debt ceiling hype. there is still time I guess.
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BlackRock's view on stocks:
