The United States: The University of Michigan consumer sentiment was below consensus but remains elevated.
Americans are extremely positive about their current situation but are less enthusiastic about the future. This chart shows the spread between the U. Michigan indices of current conditions and economic expectations.
Rates: This chart shows that the recent yield increases were primarily driven by real rates, while inflation expectations remain anchored.
The Eurozone: Hedge funds are maintaining substantial net-long euro positions which makes the currency vulnerable to a downside correction.
Canada: Non-oil trade deficit remains elevated.
Emerging Markets: Merrill Lynch forecasts Brazil’s GDP growth to hit 3% next year.
Japan: Merrill Lynch expects Japan’s economic growth to slow significantly in a couple of years.
Energy Markets: Hedge funds’ net-long position in NYMEX crude oil remains at record highs.
Bitcoin: Bitcoin’s capitalization remains relatively small when compared to other major markets.
Food for Thought: Islamic State’s revenues.
Edited by Joseph N Cohen
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Thanks to Josh Marte (@joshdigga), Matt Garrett (@MattGarrett3), Joseph Cohen (@josephncohen), Ycharts.com, S&P Global, and Moody’s Investors Service for helping with the research for the Daily Shot.
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