GREY BRIEFING #12: Aftermath of US tariffs meets expectations of interest rate cuts

Welcome back to the twelfth GREY BRIEFING! We have just experienced a week in which the markets demonstrated how quickly sentiment can shift. Surprisingly, stress signals in the US banking sector, political uncertainties, and monetary policy decisions caused movement. Above all, the turmoil among US regional banks fueled short-term recession fears and shook risk appetite worldwide. Nevertheless, the balance sheets of the major banks show stable credit quality, so that no systemic weakness has emerged from the individual cases so far.Amid these uncertainties, the environment eased briefly. US President Trump sent signals of de-escalation in the trade conflict with China, positive surprises in the technology sector, and solid bank results led to a recovery in indices and...