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United States: Morgan Stanley’s US recession probability model has turned lower in recent weeks.
Europe: With foreign capital flowing in, European markets have been remarkably forgiving of businesses that missed earnings expectations. Companies that missed saw (on average) an increase in their share price. And those firms that beat forecasts experienced massive rallies. These market responses to third-quarter earnings have been unprecedented.
China: China’s productivity growth continues to outpace the rest of the world. As a result, analysts think that in time, exports will improve. Manufacturing in other countries is simply less efficient for buyers.
Emerging Markets: Chile’s stocks appear to be underpriced relative to terms of trade. According to Alpine Macro, other indicators also suggest that the nation’s shares are attractively priced.
Commodities: This chart shows the global export market for soybeans, wheat, and corn. Soybeans are more vulnerable to disruptions, with three countries dominating the market.
Food for Thought: How Americans like their eggs:
Edited by Devon Lall
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