The Daily Shot Brief – January 22nd, 2021

Greetings,   United States: The Philly Fed’s manufacturing report showed solid factory activity in the region, exceeding market expectations.   The report also showed manufacturers facing some price pressures, which they are passing on to their customers.   United Kingdom: The CBI report showed UK manufacturers struggling with the confluence of the pandemic and Brexit. …

The Daily Shot Brief – January 21st, 2021

Greetings,   United States: Fed communications remain highly focused on employment and household spending instead of inflation. By holding down rates, the US central bank has allowed the federal government to massively increase its debt without incurring higher interest expenses. Will the Fed sustain this trend as the US implements another fiscal stimulus package?   …

The Daily Shot Brief – January 20th, 2021

Greetings,   United States: Consumer delinquency rates have been creeping higher in recent months.   However, US household leverage hit a multi-decade low last year.   Eurozone: France’s retail sector has taken a massive hit due to renewed lockdown measures.   Asia-Pacific: Home sales point to further gains in Australia’s residential construction.   China: State-owned …

The Daily Shot Brief – January 18th, 2021

Greetings,   United States: The U. Michigan consumer sentiment index declined this month. The Republican-Democrat expectations gap continues to widen.   Eurozone: Italy’s GDP contracted again in Q4 and will see another decline this quarter, according to Prometeia.   Commodities: Commodities had an impressive run since last March.   Equities: The Bespoke Investment’s “ludicrous” indicator …

The Daily Shot Brief – January 15th, 2021

Greetings,   United States: Many households are struggling to pay rent.   Eurozone: This chart shows the ECB’s monthly asset purchases.   Equities: The momentum factor has outperformed significantly over the past decade.   Credit: Investment-grade corporate bond spreads are the tightest since 2018. The average energy-sector high-yield spread is below 500bps.   Rates: US …

The Daily Shot Brief – January 13th, 2021

Greetings,   Equities: The volume of call options is hitting unprecedented levels. These are effectively leveraged bets that allow retail investors to punch above their weight.   Dealers are increasingly short gamma as they sell more options to clients. This tends to exacerbate volatility, especially during selloffs. Here is the GEX index, which is a rough estimate …