Greetings, United States: Regional Fed surveys suggest that the July ISM report will show an acceleration in factory activity at the national level. China: Industrial capacity utilization rebounded sharply in the second quarter For now, economic activity remains below last year’s levels. Energy: The Brent curve is moving back into contango. Equities: …
The Daily Shot Brief – July 27th, 2020
Greetings, Commodities: Spot gold broke through the 2011 high this morning. Here are some of the drivers of the latest rally. First, real rates are moving deeper into negative territory, supporting gold. The recent dollar weakness is another factor behind the rally. Energy: The US rig count rose last week for the first time …
The Daily Shot Brief – July 24th, 2020
Greetings, United States: Unemployment applications remain above 2 million per week. Here is the total number of Americans receiving jobless benefits (about 20% of the labor force). Eurozone: The ECB’s asset purchases have been slowing. China: The stock market rally has faded. China’s currency rebound has stalled as well. Rates: Inflation expectations …
The Daily Shot Brief – July 23rd, 2020
Greetings, United States: The Household Pulse Survey (from the Census Bureau) suggests that the labor market rebound peaked in mid-June and has been reversing since. Eurozone: Euro-area bond funds have been experiencing capital outflows since 2014. Energy: The rebound in US gasoline demand is fading. Equities: The tech mega-cap outperformance has been …
The Daily Shot Brief – July 22nd, 2020
Greetings, Equities: Half the stocks in the S&P 500 are lagging the index by over 10%. Only 22% of the members are outperforming by more than 10%. Such divergence is highly unusual. Alternatives: SPACs have been popular in recent years, with demand ratcheting up in 2020. Here are the annualized returns for alternative investments …
The Daily Shot Brief – July 21st, 2020
Greetings, United States: This chart shows the percentage of shuttered small and medium-sized businesses across industries most impacted by the crisis. The recovery has entered the slow (“pandemic”) phase, according to Moody’s Analytics. Emerging Markets: Core inflation has decelerated across most of EM Asia, except India. Equities: Retail traders are chasing ‘hot’ stocks. …
The Daily Shot Brief – July 20th, 2020
Greetings, United States: The U. Michigan Consumer Sentiment report surprised to the downside as confidence took a turn for the worse in July. The downshift in sentiment was substantial. Europe: The euro continues to advance. Equities: Here is the S&P 500 seasonality chart, which shows the market performance 60 days out. The …
The Daily Shot Brief – July 17th, 2020
Greetings, United States: The declines in initial jobless claims have stalled. The labor market recovery may take years. United Kingdom: Unemployment claims declined in June. Remarkably, the unemployment rate is holding below 4%. Europe: Here are the Q2 GDP estimates by country. Equities: Here is the ratio of Nasdaq 100 to …
The Daily Shot Brief – July 16th, 2020
Greetings, United States: The NY Fed’s regional manufacturing index showed an impressive improvement in factory activity. It’s worth noting that New York and New Jersey were late to reopen, and some of the rebound is due to pent-up demand. The expectations index is off the highs but remains elevated. United Kingdom: This year’s …
The Daily Shot Brief – July 15th, 2020
Greetings, United States: The headline CPI increased, driven by the recovery in fuel costs and soaring food prices. Market-based inflation expectations have nearly recovered from the pandemic-led decline. China: The nation’s trade surplus is near multi-year highs on a year-to-date basis. Equities: Here is a summary of S&P 500 dividend cuts, suspensions, …
