Equity sector markets saw significant reversals from the ugly June with positive returns for all sectors. A continuation of this trend may push more sectors into positive territory; however, the euphoria of a more moderate Fed may be short-lived as we get more economic data that either confirms a likely slowdown or inflation data that shows no signs of moderation.
The impact of changing expectations on the Fed rate path spilled over to country equity returns. While Europe is facing a severe energy shock, markets moved higher for many EU countries. The only major exception was China which is dealing with continued lockdowns and a real estate market that will not easily improve and will likely further push down growth.
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