Rally for equities, credit on Ukraine-Russia case-fire talks will not be sustained

News

Morgan Stanley’s Head of U.S. and European Credit Strategy Srikanth Sankaran speaking in an interview with Bloomberg TV. In a nutshell:

  • rally in equity and credit markets on optimism about progress in cease-fire talks between Russia and Ukraine is just a temporary blip
  • “The focus will definitely shift back to the central bank hawkishness”
  • rally is “likely to fade over the near term,” … as the market starts to price in the magnitude of the Fed’s upcoming rate hikes.

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