Despite a decline for risky assets on Friday, the rebound on equity markets continues. This morning, futures on major European indices are rising (stock markets in the United States are closed today) against the background of the changing nature of political rhetoric in Greece. To journalists’ surprise, leading politicians calling to “leave the euro area” have been misunderstood as an appeal to stay the course in Europe.
At the same time, for us, the more important question is just how long the rebound can last. From our point of view, there is at least a 25% chance that we have seen a local minimum for U.S. equity markets, which, unfortunately, cannot be said of the UX Index. Thus, the medium-term growth potential for markets does exist.
On the other hand, the road upwards is not likely to be easy: the fact that we are approaching the beginning of a new month means that we are also getting closer to the publication of a large set of statistics, ranging from the PMI index to the employment dynamics in the United States, which will likely not bring much joy for markets as the global economy slows down.
