Greetings, United States: First, the Federal Reserve hiked rates by 50bps, as expected. Here is how real rates (TIPS yield) reacted to Powell’s comment of a 75bp increase being off the table for now. Equities: In equity markets, the P/E ratio compression has been severe in 2022 (see chart). Energy: As …
The Daily Shot Brief – May 4th, 2022
Greetings, United States: The March job openings report topped forecasts as the number of vacancies hit a record high. Emerging Markets: Which countries’ economies are most sensitive to China? Energy: Let’s take a look at which energy sources provide the best return on investment. Equities: Only 10% of global equity markets are trading below …
The Daily Shot Brief – May 3rd, 2022
Greetings, United States: First, let’s look at the April ISM Manufacturing PMI, which surprised to the downside. International container freight rates are off the highs, but we are unlikely to ever see pre-COVID levels again. Eurozone: Here is the PMI output index at the Eurozone level (growth has stalled). Equities: In …
The Daily Shot Brief – May 2nd, 2022
Greetings, Equities: Friday marked a bad ending to a challenging month in the market. The Nasdaq 100 and the Nasdaq Composite saw the worst month since the financial crisis. Rates: The 2-year Treasury yield keeps climbing as more aggressive Fed rate hikes get priced in. Commodities: Let’s take a look at last …
The Daily Shot Brief – April 29th, 2022
Greetings, The United States: Let’s start by looking at the US, where GDP unexpectedly contracted in the first quarter. In the labor market, jobless claims are holding near multi-decade lows. The Eurozone: Next, Germany’s consumer inflation hit 7.8% as the country considers a Russian oil embargo. China: Tech stocks are surging …
The Daily Shot Brief – April 28th, 2022
Greetings, The United States: To begin, the US trade deficit in goods hit a new record as imports sharply outpace exports. This result didn’t bode well for the GDP report today. Looking towards the housing market, the current loan-to-value ratio is relatively low, unlike during the subprime housing crisis. Japan: The BoJ …
The Daily Shot Brief – April 27th, 2022
Greetings, Equities: Stocks tumbled on Tuesday amid concerns about slowing economic growth pressuring earnings. The market got an additional jolt from Alphabet’s weaker-than-expected results after the close Energy: Russia is weaponizing natural gas, causing natural gas futures to jump. Rates: Market jitters have created tremendous demand for Treasury bills. Asia: South Korea’s high …
The Daily Shot Brief – April 26th, 2022
Greetings, Equities: First, Beijing announced additional support for its economy and markets. Although the stimulus would be thought to boost global stocks, improving growth in China could strengthen commodity prices and accelerate inflation. The correlation between commodities and stocks is now at its most negative since the financial crisis. Defensive sectors, such …
The Daily Shot Brief – April 25th, 2022
Greetings, The United States: The manufacturing index showed robust factory activity across the US this month. Europe: Tourism activity has been rebounding in recent months. China: The nation’s stock market is facing severe headwinds as the economy slows. Cryptocurrency: The illiquid supply of bitcoin has been rising, which represents that amount of BTC …
The Daily Shot Brief – April 21st, 2022
Greetings, The United States: In the US, goods inflation is expected to moderate moving forward, even as services CPI continues to climb. Equities: In equity markets, earnings estimates have been strengthening despite projections for slower GDP growth. Energy: US crude oil production is nearing 12 million barrels per day. The US Strategic Petroleum …
