Greetings,
The United States: The PPI index unexpectedly declined in July. The PPI (Producer Price Index) measures change in the prices paid to U.S. producers of goods and services.
This decline was driven mostly by lower wholesale gasoline prices.
The Eurozone: The Eurozone’s energy share of the CPI (Consumer Price Index) is much higher than in the US as electricity prices continue to hit record highs.
Equities: Earnings downgrades have slowed relative to upgrades.
Rates: Deutsche Bank’s measure of the effective (shadow) fed funds rate hit 4%. US monetary conditions are tighter than the Fed’s policy would suggest.
Global Developments: Flows into safe assets continue to outpace flows into risky assets. Safe assets do not carry a high risk of loss across all types of market cycles (e.g., T-bills, cash, money market funds) compared to risky assets (e.g., equity, corporate debt).
Food for Thought: Lastly, let’s take a look at global EV sales.
Edited by Alexander Bowers
Contact the Daily Shot Editor: Brief@DailyShotResearch.com
