UBS House View Daily US

This report emphasizes the strategic benefit of including commodities in investment portfolios for inflation hedging and diversification. Additionally, it analyzes the implications of the weaker-than-expected June US payrolls data and reaffirms an attractive outlook for Japanese equities.

Key Takeaways

• 1.The report advocates for broad commodity exposure in portfolios to enhance diversification and provide an inflation hedge.
• 2.June US nonfarm payrolls undershot expectations at 57,000, leading to a delay in market-priced expectations for Federal Reserve rate hikes.
• 3.UBS maintains an Attractive rating on Japanese equities, noting a healthy corporate earnings backdrop and resilience in domestic manufacturing and retail.

Table of Contents

• Consider broad commodity exposure in portfolios
• From the studio
• Thought of the day
• What to watch: 6 July
• Inflation hedging
• Downside protection
• Caught our attention
• Japanese stocks take a breather
• Market update
• Appendix

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