Morgan Stanley Says Trade Can Bring Fed Back in the Picture

The transcript discusses the divergence between bond and equity markets, highlighting the improved tone in market sentiment due to reduced fears of Fed over-tightening and better US-China relations. However, concerns about slowing global growth and declining PMI remain. The discussion also covers how trade breakthroughs could influence Fed actions, noting the difficulty of balancing positive trade updates with Fed dynamics.

What is the perceived difference between equity markets and bond markets according to the transcript?

• Both markets are perceived equally.

• Equity markets are viewed as more volatile.

• Bond markets are considered more volatile.

• Equity markets are seen as more stable.

What has improved the tone in US-China relations according to the transcript?

• A new trade agreement.

• Better communication between leaders.

• The possibility of a beneficial outcome.

• Increased tariffs.

What are the fundamental issues still affecting the market?

• Unchanged global growth and PMI's.

• Stable global growth and constant PMI's.

• Slowing global growth and declining PMI's.

• Rising global growth and increasing PMI's.

How do trade breakthroughs potentially affect the Federal Reserve's actions?

• They delay the Fed's actions.

• They have no impact on the Fed.

• They bring the Fed back into the picture faster.

• They cause the Fed to lower interest rates.

What dual factors caused the market to react in the last week?

• A hawkish Fed and negative trade news.

• A dovish Fed and positive trade headlines.

• Stable Fed policies and neutral trade news.

• A dovish Fed and negative trade headlines.