LONDON — European stocks are expected to open higher Tuesday, with global markets looking set to rally after widespread volatility on Monday.Moving out of cash? These are the top-performing fixed income funds this yearbounced in overnight trading, while Japan stocks rebounded sharply overnight after the Nikkei 225 and the Topix dropped over 12% in the previous session.
"We think risk assets can recover as recession fears ease and the rapid unwinding of carry trades stabilizes," the firm's Investment Institute wrote said."We keep our overweight to U.S. equities, driven by the AI mega force, and see the selloff presenting buying opportunities. BlackRock added that the main driving force behind the rise in the unemployment is an uptick in labor supply due to immigration as opposed to layoffs, which is a key difference compared to previous recessions.Fed should change communication even if it doesn't cut rates this week, BlackRock's Rieder says
Rieder pointed out that traders are already pricing in aggressive moves from the Federal Reserve and said that the central bank should change its public communication to show that it knows the labor market has weakened and that rate cuts have become increasingly likely.