Morgan Stanley strategists warn that the stock market faces liquidity tightening risks

The team led by Michael Wilson pointed out that the scale of asset purchases conducted by the Federal Reserve through reserve management has decreased by about 75% from its peak, and the liquidity support provided by its balance sheet is weakening. Strategists wrote in the report: “The liquidity environment is tightening and may continue to pose resistance to the upward movement of the stock market in July, especially as the market tests the Federal Reserve's newly revealed policy stance.” The team expects corporate profits to remain the core driver of the stock market bull run. (Bloomberg)