There are four key themes driving risk sentiment and price action across assets at present. First, US macro data and Fed rate cut expectations are contributing to market movements. Second, US corporate earnings are being closely watched. Third, geopolitical tensions in the Middle East are impacting risk sentiment. Finally, developments in China, particularly in the consumption and property sectors, are influencing market behavior. Despite concerns about the Fed delaying rate cuts and tensions between Iran and Israel, risk assets have remained resilient. Gold is considered a bullish investment, and bonds are seen as attractive for portfolio duration. However, there is skepticism about the valuations of global and domestic equities. Overall, these four themes are shaping market dynamics and investor sentiment.
