Summary of Key Points from the Conference Call Industry Overview - The report provides insights into various asset classes including equities, fixed income, currencies, and commodities, with a focus on market sentiment and positioning as of September 2025. Core Insights and Arguments 1. **Equity Market Forecasts**: - S&P 500 is forecasted to return 1.5% in the base case, with a bear case return of -23.2% and a bull case return of 12.3% [3] - MSCI Europe shows a similar trend with a base case return of 5.6% and a bear case of -23.5% [3] - Emerging Markets (MSCI EM) are projected to have a bear case return of -29.3% and a base case of -3.5% [3] 2. **Fixed Income Insights**: - UST 10-year yields are at 4.08%, with a forecasted base case return of 9.7% [3] - UK 30-year bond yields have risen to their highest levels since 1998, indicating a significant shift in the fixed income landscape [7][17] 3. **Commodity Performance**: - Gold has surpassed $3,500 for the first time, reflecting strong demand amidst market volatility [19] - Brent crude oil is forecasted to have a bear case return of -22.6% and a bull case return of 85.9% [3] 4. **Market Sentiment and Positioning**: - The Market Sentiment Indicator (MSI) aggregates survey positioning, volatility, and momentum data, indicating a mixed sentiment across different asset classes [60] - The report highlights a divergence in volatility between US stock and bond markets, with the VIX-MOVE ratio near its lowest since February [7][11] 5. **ETF Flows**: - Recent data shows a significant outflow from US equities, with a net flow of -0.1 billion over the past week, while bonds saw inflows of 13.8 billion [42] Other Important Insights 1. **Brazilian Equities**: - Brazilian equities have reached a new all-time high, indicating strong performance in the Latin American market [10] 2. **Cross-Asset Correlations**: - The report discusses the current correlation indices, noting that equity and credit correlations are at 79%, indicating a strong relationship between these asset classes [76] 3. **COVA Framework**: - The Cross-Asset Correlation-Valuation Framework (COVA) identifies good portfolio diversifiers, emphasizing the importance of correlation and valuation in investment decisions [83] 4. **Extreme Market Moves**: - The report tracks significant market moves, highlighting the largest weekly changes in various asset classes, which can indicate potential volatility and investment opportunities [93] 5. **Analyst Disclosures**: - The report includes disclaimers regarding potential conflicts of interest and the objectivity of Morgan Stanley Research, urging investors to consider this information as one of many factors in their investment decisions [5][6] This summary encapsulates the key points from the conference call, providing a comprehensive overview of the current market landscape and investment outlook.

June 16, 2025 02:38 PM GMT Cross-Asset Spotlight | Global M Update Signals, Flows & Key Data Erika.Singh-Cundy@morganstanley.com +44 20 7425-0960 A weekly summary of key cross-asset monitors, data, moves, and models tracking sentiment, fund flows, and positioning. Key highlights from last week: Exhibit 1: Morgan Stanley forecasts Bear Base Bull Bear Base Bull Equities S&P 500 5,977 4,900 6,500 7,200 -16.7% 10.0% 21.7% 19% 0.54 MSCI Europe 2,169 1,610 2,250 2,620 -22.6% 6.9% 24.0% 16% 0.44 Topix 2,756 2,100 ...