The global economy is more likely to achieve a soft landing than a recession, which will continue to be positive for risky assets, JPMorgan Chase & Co strategists said on Monday.

Recent data show that inflation and wage pressures have eased, the economy has rebounded and consumer confidence has stabilized, indicating that the world will avoid recession, a team of analysts such as Marko Kolanovic, one of Wall Street's staunch bulls, and Nikolaos Panigirtzoglou, including JPMorgan Chase & Co, wrote in a report on Monday. They said:

Economic data and investor positions are the more important factors that determine the performance of risky assets than the rhetoric of the central bank.

JPMorgan Chase & Co believes thatA gradual easing in inflation is good for cyclical and small-cap stocks, favouring emerging market and Chinese stocks rather than "expensive" defensive stocks. The bank is also bullish on recent falls in energy stocks and advocates a "significant" increase in commodity holdings.

We insist that inflation will improve on its own as the distortions recede and that the Fed's 75 basis point rate hike is overreacting. We may see the Fed turn, which is good for cyclical assets.

We do not expect the global economy to fall into recession, fiscal stimulus will intensify, and investor positions and sentiment remain very low, so despite the recent tougher language of the central bank, these factors should continue to provide positive for risky assets.

Isaac Poole, chief investment officer of financial services firm Oreana Financial Services, shares a similar view with Xiaomo. Poole said in an interview with the media that the data show that the global economy is heading for a soft landing. In this case, we actually think that US stocks may return relatively well next year. Earnings growth may be better than expected, "because there is a lot of pessimism in it".

However, with the release of the latest US inflation data, the uncertainty of a soft landing for the global economy, especially the US economy, has greatly increased.

The day after JPMorgan Chase & Co expressed the above views, data released by the US Bureau of Labor Statistics showed that the overall CPI in the United States fell less than expected in August compared with the same period last year, and the core CPI unexpectedly accelerated compared with the same period last year. The Fed's interest rate hike in September was almost a foregone conclusion, while the expectation of a 100bp interest rate hike began to rise. Expectations of violent interest rate hikes and recession fears spooked US stocks, with the S & P 500, Nasdaq and Nasdaq 100 nearing their September 6 gains, the Dow its lowest since July 18, and US stocks falling below their 50-day moving average.