Greetings,
China: Sovereign credit default swap spreads are starting to rise again.
United States: The U. Michigan consumer sentiment index was downgraded from the earlier estimate, pointing to some deterioration in the second half of May. The expectations index (second chart) was lower in May than in April.
Households are increasingly uncertain about their incomes going forward.
Rates: T-Bill issuance is expected to slow in the second half of the year.
Credit: Flows into US high-yield ETFs have reached an extreme.
Equities: Net-short speculative positioning in S&P 500 futures is at the most extreme level since 2015. While these investors are not necessarily short the market (futures are often used to hedge stock portfolios), it does suggest persistent caution among leveraged funds.
Food For Thought: Which industries are best positioned for remote work?
Edited by Daniel Moskovits
To receive the Daily Shot Premium, you need to be a subscriber to The Wall Street Journal. The Daily Shot readers qualify for a special membership offer of $1 for 2 months and can join simply by clicking here.
If you are already a WSJ member, you can sign up for The Daily Shot at our Email Center by clicking here.
The Daily Shot Premium is also available online at DailyShotWSJ.com
If you have any issues at all, please contact a Customer Service representative by calling 1-800-JOURNAL (1-800-568-7625) or sending an email to support@wsj.com.
Contact the Daily Shot Editor: Editor@DailyShotLetter.com
Subscribe to the Daily Shot Brief