Risk sentiment recovers
• Improved sentiment. US regional bank share prices bounce back. Data also shows that the US labour market remains tight.• Fed rate expectations. Markets continue to forecast rate cuts by the US Fed from Q3 2023. We think this is misplaced. US CPI released this week.• AUD recovery. Positive risk appetite has supported the AUD. Consumer and business confidence, and the Federal Budget are the local focal points. After some tremors earlier in the week, risk sentiment improved on Friday. Following the sharp falls over previous sessions, US regional banking stocks rebounded strongly, with the banks in focus (PacWest Bancorp...