Greetings, The United States: Consumer spending growth is below the pre-COVID trend but is not crashing. Households continue to spend despite deteriorating sentiment. Asia-Pacific: Taiwanese and South Korean equity markets are pricing in a deep slump in global chip sales. China: US-listed Chinese shares are struggling. Cryptocurrency: July was a strong month for cryptos, …
The Daily Shot Brief – July 29th, 2022
Greetings, The United States: The second-quarter GDP report surprised to the downside, with the US entering a technical recession. The nominal GDP continues to surge, but inflation is taking a toll. Market expectations for the year-end fed funds rate dipped further. Japan: The yen is rebounding as this chart shows the US dollar is …
The Daily Shot Brief – July 28th, 2022
Greetings, The United States: As expected, the Fed raised rates by 75 bps. However, the market interpreted Powell’s comments as being a bit on the dovish side, with rising hope that economic slowdown will force the Fed to pause rate hikes after September’s meeting. Inflation expectations jumped in response to the supposedly “friendlier” Federal …
The Daily Shot Brief – July 27th, 2022
Greetings, The United States: Confidence among high-income Americans is declining rapidly, which could impact spending. New home sales dipped below 2016 levels last month and are now about 20% below the June 2021 volume. The Eurozone: Bond spreads are widening despite the ECB’s new framework to fight defragmentation. Commodities: Commodity ETFs have been …
The Daily Shot Brief – July 26th, 2022
Greetings, The United States: Starting off with the housing market, properties are taking longer to sell. The Eurozone: Germany’s IFO business expectations index is crashing, which points to a contraction in Germany’s GDP. Energy: Russia is putting a squeeze on Europe’s natural gas markets. Futures jumped in response to this information. …
The Daily Shot Brief – July 25th, 2022
Greetings, The United States: The S&P Global Composite PMI moved into contraction territory this month (PMI < 50), signaling a pullback in business activity. Liquidity has been decreasing as the Fed reverses quantitative easing. It’s a headwind for economic growth. China: Property shares have stabilized as Beijing plans a massive bailout. Emerging Markets: The …
The Daily Shot Brief – July 22nd, 2022
Greetings, The United States: To begin, the Philly Fed’s regional manufacturing expectations index dipped well below the 2008 trough. The Conference Board index of leading economic indicators declined 0.8% last month, which was more than the expected 0.6%. Here is the breakdown. The Eurozone: The ECB raised rates by 50 bps but provided …
The Daily Shot Brief – July 21st, 2022
Greetings, The United States: First, more sellers in the housing market are cutting their listing prices. Canada: The headline CPI in Canada topped 8%, but the print was softer than expected. The Eurozone: Italian stocks and bonds took a hit after prime minister Mario Draghi resigned. This renewed political uncertainty will likely exacerbate the …
The Daily Shot Brief – July 20th, 2022
Greetings, The United States: CFOs have soured on the economy but remain remarkably upbeat about their company’s business. Europe: Let’s take a look at Europe’s power/energy mix. China: Beijing continues to struggle in its attempts to contain the property crisis. Homebuyers are refusing to make loan payments on unfinished housing. Commodities: …
The Daily Shot Brief – July 19th, 2022
Greetings, The United States: In the housing market, consumers now expect price declines over the next 12 months and slower growth over the next 5 years. The Eurozone: Fund managers are very bearish on Eurozone equities. Emerging Markets: The Pakistani rupee continues to tumble despite bailout support, amid increased political uncertainty. Cryptocurrency: Crypto investment …
