Greetings,
The United States: It’s worth noting that rising regional survey price indices (such as the Philly Fed’s data above), don’t necessarily translate into higher consumer inflation.
Also, firmer earnings growth in the 2005-07 period did not result in higher core inflation (PCE).
Equity Markets: This chart shows sector weights by market cap.
Emerging Markets: This chart shows the EM financial conditions indices as a comparison to what took place during the taper-tantrum days.
Canada: Asylum applications in Canada spiked last year.
Eurozone: Euro area’s construction sentiment points to improvement in output later in the year.
Rates: The 30yr -10yr breakeven spread is now negative. Investors see higher average inflation over the next ten years than during the next 30.
Energy: Global oil stockpiles are back below the 5-year average.
Here are the “excess” US inventories.
Food for Thought: Terrorist groups in South East Asia.
Have a great weekend!
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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