DAVY VIEW

Equity indices were buoyed yesterday by the US Job Openings and Labour Turnover Survey (JOLTS) release showing demand for workers cooling rapidly. Specifically, the quit rate is now below pre-pandemic levels. Less encouragingly, the latest ECB money and credit data showed lending to the private sector slowing rapidly, pointing to the risk of recession in H2 2023 and following the poor PMI and other survey indicators on economic activity.