Macro Strategy Views Podcast: The Fed-ECB divergence and what it means for markets

In our podcast, Macro Strategy Views, we discuss the global outlook, Fed-ECB divergence and what it means for markets. Global Head of FI&C Research Thomas Harr chairs today’s podcast while Head of International Macro Research Jakob Ekholdt Christensen and Senior Analyst Lars Sparresø Merklin join him. The global economy is set to weaken in the coming months, but we expect the Fed easing to mitigate the slowdown. We expect global equity markets to head lower near term, as risks are rising, while rewards are muted. The USD will weaken on Fed easing. USD curves will steepen, while ECB inaction will continue to depress Eurozone inflation expectations and nominal yields.