Weekly Commentary: Seizing new regime opportunities

We see the new regime playing out and a high interest rate world, with stagnant activity and persistent inflation. We shift our tactical views to reflect this outlook. European stocks rose last week after the likely last European Central Bank rate hike. U.S. stocks were flat after in-line CPI and strong retail sales data releases. Markets expect the Federal Reserve to keep policy rates unchanged this week. We see the Fed holding tight as inflationary pressures persist.