(09 JUNE 2020)DAILY MARKET BRIEF 1:Time for correction?

<p>US equities extended rally yesterday. The S&amp;P500 (+1.20%) rose to a fifteen-week high, reversing most of post-Covid sell-off. Despite real damage to businesses and economy, the US stocks are set to continue their pre-Covid race to fresh historical highs. The latter raises many eyebrows of course, regarding the divergence between asset prices and underlying economic dynamics. But that is the ultimate result of an unprecedented monetary and fiscal intervention, which create and maintain the illusion that all is fine. Speaking of monetary policy, the Federal Reserve starts its two-day monetary policy meeting today and is expected to maintain its policy unchanged. The Fed already deploys all available tools to maximum capacity to help markets recovering. And it works. However, the unusually high, or low economic figures and the impossibility of predicting those numbers in such a chaotic and unparalleled crisis environment clearly shows that the market doesn’t have a clue about the real</p>