Greetings,
The United States: The CPI report surprised to the upside again. The headline CPI index re-accelerated to hit a multi-decade high. While goods inflation is easing, food, energy, and core services CPI sped up last month.
Also, the biggest problem for the Fed may not even be the CPI surprise. Instead, it could be the chart below. Are longer-term inflation expectations becoming unanchored?
The Eurozone: Supply chain disruptions and higher input prices have delayed the recovery from the pandemic.
China: Credit growth rebounded in May, topping expectations.
Cryptocurrency: Ethereum is widening its underperformance against Bitcoin.
Equities: The S&P 500 forward P/E is nearing 16x as traders lose confidence in earnings forecasts, amid concerns about falling margins.
Food for Thought: Lastly, let’s take a look at America’s trading partners.
Edited by Alexander Bowers
Contact the Daily Shot Editor: Brief@DailyShotResearch.com
