As market players search for clues to lack of moves, comments from Marko Kolanovic, global head of macro quantitative and derivatives research at JPMorgan Chase & Co, crossed wires during late Thursday.
While spotting “no real change in the macro fundamental” Mr. Kolanovic raises doubts over the fears of “month- and quarter-end rebalances that are broadly advertised as an event that will lead to equity selling.”
Even so, some of the catalysts mentioned include, “The Fed has remained dovish, the US stimulus was released as planned, and the pandemic and vaccination in the US are steadily improving.” Furthermore, “The European COVID-19 situation is lagging behind that of the US and UK, which was broadly expected and well understood due to vaccination delays.”
In the conclusion, the US central banker said, “There will be no monthly selling and indeed there could be buying of equities into month-end. A lack of these flows, and broad anticipation of ‘month/quarter-end’ effect, could result in the market moving higher near term, all else equal.”
Share
