July 2023 Monthly Market Update

July’s global financial markets built on the rally in risk assets with a goldilocks soft landing narrative building around upside surprises in overall growth and downward trending inflation data. Key economic reports crossing the wires in July included a healthy but cooling labor market, continued contraction across the global manufacturing sector, robust service sector activity, decelerating inflation trends, and upside surprises in economic growth which have pushed recessions fears further out on the horizon.