Sentiment Up, Forecasts Down

Financial market sentiment has improved notably in recent days, buoyed by an unexpected pause in the US-China tariff war and the May 12 announcement of significantly reduced bilateral tariff rates. This détente has eased investor fears of a deepening global trade shock and sparked a rebound in risk appetite. Our charts this week focus on:

• US shipping activity
• The Blue Chip Growth Consensus
• The Blue Chip Inflation Consensus
• Global imbalances
• US bank lending standards
• Oil prices and inflation expectations