JPMorgan Chase: Stock markets are expected to remain under pressure, and the Fed is expected to ease policy in a passive manner

JPMorgan strategists said stocks are likely to remain under pressure from slowing economic activity, falling bond yields and lower earnings expectations. "We remain cautious about stocks and expect a 'bad news is bad news' phase to come," Mislav Matejka wrote in a report. "Against this backdrop, risk trading should not be undertaken." Strategists noted that the Federal Reserve will begin to ease policy, but will act more in a reactive manner in response to weak growth, "which may not be enough to drive a rebound." (Cailian Press)