As Absolute Strategy Research highlight in a recent report, ”with US equities up 17% from Christmas Eve’s oversold positions, the “Powell Pivot” appears to have given the markets what they wanted.” Yet the economic data remains terrible, particularly in Europe. ASR show 20 charts which suggest that the macro environment is still highly challenging. Meanwhile, Top Down Charts highlight some key indicators and charts in the credit markets that show how lending standards have tightened up in Q1 so far, and which reinforce the idea that the tightening cycle may have come to an end. On China, we highlight research from Global Source Partners, who argue that Western analysts are too optimistic in believing that Beijing has full control of all of the state’s financial and fiscal levers, and that the state is willing or able to support all credit in China. The reality is that current Chinese stimulus measures are likely to be inadequate due to restrictions imposed on shadow lending. Finally, with the earnings season in full swing, Credit Suisse have reviewed the results globally and they show that US earnings growth is still much stronger than that to be found in the rest of the world, while Yardeni Research say that unlike the US economy, the S&P 500 can’t decouple from a slowing global economy.