Sentiment indicators improve, focusing on PCE and non-farm data👀

Compared to yesterday, fixed markets were much quieter just ahead of month-end, with bond yields hanging around unchanged, while stocks squeezed further on the ol' goldilocks theme once again. After a long-August, a certain number of sentiment indicators have flipped positive again, with the bulls-bear gear index flipping to positive on the MSCI in recent days, on the back of the piece-meal stimulus plans out of China as well as the (welcomed?) softening in economic momentum.

Market activity should continue to stay light as we head into the labour day long weekend, with the market eager to get past today's PCE release and NFP on Friday in a positive manner. We expect position de-risking to be the main theme heading into the end of the week, as participants reload for what is usually a volatile September for risk markets.

#PCE #bond #stock #MSCI #NFP