Receding political risks, tentative signs of macro stabilization and accommodative central banks have underpinned risky assets, benefitting our pro-risk stance.

Markets are already discounting a number of good news, warranting a somewhat more cautious tactical allocation stance into year-end.

That said, this environment is still boding well for risk sentiment. Low inflation, reduced risks of recession and sustained monetary policy support will keep a lid on core yields while still underpinning risk assets.

As the upside potential for prices is lower than few months ago, we slightly reduced the overweight in Credit and Equities, and lowered the underweight in Core Govies and Cash.