Morgan Stanley Strategists See Inflation as Key for Path of Stocks
- US CPI print set to provide Fed clues after softer jobs data
- Strategist recommends quality cyclicals and quality growth
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“Mixed” messages from key US economic data and the accompanying swings in stock markets mean investors should load up on defensive sectors such as consumer staples, according to Morgan Stanley strategists.
April Inflation figures due next week will offer fresh insights about the US economy after employment data out Friday showed the labor market is cooling. Some traders took the latest jobs numbers as an indication that the Federal Reserve will be able to start cutting interest rates as early as September.