A soft landing is a more likely scenario for the global economy: JPMorgan

"Economic data and investor positioning are more important factors for risky asset performance than central bank rhetoric," the strategists wrote. "We maintain a pro-risk stance"

A soft landing is becoming the more likely scenario for the global economy, which will continue to provide tailwinds for risky assets, according to strategists at JPMorgan Chase & Co.

Recent data pointing to moderating inflation and wage pressures, rebounding growth and stabilizing consumer confidence suggest the world will avoid a recession, a team including Marko Kolanovic and Nikolaos Panigirtzoglou wrote on Monday. Markets can benefit from fiscal stimulus in China, energy support plans in Europe and very low investor sentiment, they said.

“Economic data and investor positioning are more important factors for risky asset performance than central bank rhetoric,”