United States: Supplier deliveries slowed as a result of China-related bottlenecks.
Manufacturing activity indicators tend to get a boost from slowing supplier deliveries because they can be an indication of rising demand (suppliers can’t keep up). But that’s not the case this time around, suggesting that the regional Fed surveys and the ISM index are artificially inflated due to China-based supply chain disruptions.
China: 85% of China’s small and medium-sized businesses surveyed said they are unable to operate for more than three consecutive months if they rely on their cash reserves.
Also, real yields have been moving deeper into negative territory (partially driven by the spike in pork prices boosting the CPI). (Real yields are the returns from investments which is the 10-Y in this case minus inflation. Here, inflation is going up partially causing real yields to go down)
Emerging Markets: Russia’s central bank is done with rate cuts for now.
Equities: How did retail investors change their sector allocations over the past couple of months (at ETrade)?
Credit: The largest investment-grade bond ETF saw some outflows recently.
Food for Thought: US battery storage capacity:
Edited by Devon Lall
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