The soft landing narrative (again)

Recent weeks have seen heightened optimism in financial markets that the global economy is on course for a soft landing. This optimism is rooted in a number of factors, including stronger-than-expected economic data, dovish communications from several central banks alongside tame inflation outcomes in Europe and Asia. In our charts this week we offer further perspective on this narrative. Specifically we look at:

·         Broad money growth and equity markets

·         The resilience of US capital spending

·         Receding inflation expectations in the euro area

·         Fading global supply chain pressures

·         Equity market inflows in Asia

·         India’s catch-up growth potential