The ‘meme stock’ phenomenon was back with a bang this week

Key points

• An in-line US CPI release brought relief to markets and helped a risk asset rally.
• Evidence of slowing consumer demand notwithstanding, additional data will be required before the FOMC is likely to start cutting rates.
• Expectations are that a June cut by the ECB is a done deal.
• Inflation data in the UK remains high, dampening enthusiasm for rate cuts.
• As risk assets continue to rally, we think it appropriate to maintain discipline and look to reduce exposure on strength.

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