JP Morgan: US small & mid-cap stocks have "quite a bit of upside" if inflation, rates fall

<p>JP Morgan's Kolanovic on the US June CPI result in a note Monday:</p><ul><li>has slightly increased the Federal Reserve’s chances of a “soft landing”</li><li>“While we still see the Fed hiking at the July meeting, the downside CPI surprise means a narrow path to a soft landing is modestly wider”</li><li><p>
remains skeptical “that a soft landing can be achieved in which
inflation returns to central bank comfort zones on a sustained basis
without a downturn.”</p></li><li>warned that European stocks face risks in H2 from more European Central Bank tightening</li><li>US small- and mid-cap equities may offer “quite a bit of upside” if inflation falls to 2.5% and interest rates start to come down</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.