What’s top of investors’ minds this week?

Robust US April payrolls add uncertainty to the US outlook. The upside surprise of 177k new jobs with aggregate payroll income growth of 5.3% 3m/3m annualised and an unchanged unemployment rate of 4.2% show that the US economy was healthy going into Trump’s April 2 tariff shock. We expect this to lead Fed Chair Powell to project a cautious rather than dovish stance at this week’s postFederal Open Market Committee (FOMC) press conference. If correct, this could challenge current market pricing of
81bps of Fed cuts by year-end, push up Treasury yields somewhat, and slow or stall the equity rally.

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Vis Nayar

Vis Nayar is the Chief Investment Officer and a member of the Executive Management Committee at Eastspring Investments. Vis spearheads Eastspring’s investment platform encompassing equities, fixed income, multi asset and quantitative solutions, and oversees investment offerings across markets.

Information provided is general information and is for educational purposes only, and does not include, or constitute as, financial product advice.