Investment banks are growing increasingly upbeat about the prospects for the global economy following the US-Iran truce.
Though beset by challenges, the interim deal — alongside a dampening of trade-war rhetoric and a surge in tech capex — is laying “the foundation for a period of strong and balanced global growth,” JPMorgan’s chief economist wrote in a note to clients.
Goldman Sachs, meanwhile, lowered its risk of a US recession in the next 12 months and noted that Asia’s “growth prospects are brightening again.” Still, Barclays analysts warned that while falling oil prices would curb inflation, booming chip prices are pulling in the opposite direction.