1m agoWe’re about midway through morning trade in Asia. Let’s take a step back to review commentary from a few Wall Street analysts, who were busy over the weekend:

• Those at Barclays said the “cleanest expression of a tariff-induced global slowdown” was for investors to buy safe havens over those currencies typically reliant on economic growth. That means expecting further downward pressure on the Chinese yuan and Asian exchange rates. But they expected relief for the Canadian dollar, Mexican peso and sterling.
• Morgan Stanley’s strategists said “While a US recession that drags much of the global economy down with it is not our base case, it is increasingly a realistic bear case.” They said markets are not quite pricing in a downturn, but noted the “normal” correlation between stocks and bonds has returned.
• JPMorgan Chase analysts said with their economist colleagues now expecting more rate-cuts from the Fed, 2- and 10-year Treasury yields will reach 2.70% and 3.65%, respectively, by year end, versus 3.65% and 4.15% previously.

Simon KennedySenior Executive Editor, Macro Markets