Politics Stocks: Fx Market

politics stocks: Read Investors face a conundrum Which market is wrong In our view, it is difficult to see the Fed cutting by as much as markets expect, if at all, if there is a U.S.-China trade deal, and it would be difficult for equities to remain so strong if there is a trade war, the BAML analysts wrote, according to Market Watch. See Why the path for stocks and other markets now depend critically on politics' Stocks have found their footing in June as expectations for Federal Reserve rate cuts have risen, reflecting apparent faith in the central bank's ability to avert a severe economic slowdown or recession. The bond market is too pessimistic, the equities market too optimistic, and the FX market complacent, said Bank of America Merrill Lynch currency strategists Athanasios Vamvakidis and Adarsh Sinha, in a Wednesday note see chart below . Bank of America Merrill Lynch Caption outside of wrapper for normal article images The analysts are homing in on the seeming disconnect reflected by a simultaneous rally in the stock and Treasury markets. The S&P 500 SPX, 0.41% is up 4.8% so far in June, trading less than 3% below an all-time closing high set just before a May pullback. The Dow Jones Industrial Average DJIA, 0.39% is up around 11.6% in the year to date, gunning for its strongest first half since 2013. The index is up roughly 15% in the year-to-date, putting it on pace for its best first half since 1998, according to Dow Jones Market Data. (news.financializer.com). As reported in the news.