Markets stick to recovery mode ahead of European trading today ...Middle East

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Markets stick to recovery mode ahead of European trading today
This is one of my favourite strips and it sums up well what has been happening to start the week:It's all about emotions and extremes. We've gone from full-fledged panic and traders pricing in five rate cuts to a modest bounce yesterday. US stocks did see some selling late on but futures are pointing higher and risk sentiment is in a better spot today. S&P 500 futures are up 0.9% currently, with the index itself hoping to retest its 100-day moving average again later.In terms of Fed pricing, we're seeing things calm down a fair bit too. The odds of a 50 bps rate cut in September are now at ~64% while there is ~103 bps of rate cuts priced in by December. At the height of the panic, traders we

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