Greetings,
The United States: The regional Fed surveys have been pointing to a solid national manufacturing report. Indeed, the August ISM index reached the highest level since 2011.
The NY Fed Nowcast model indeed showed an increase in the GDP projection as a result of the ISM data.
China: With the currency stable, foreign fixed income investors turn their attention to China’s government bonds. Compared to opportunities in the developed markets, the nation’s yields look attractive.
Energy Markets: Money managers have sharply reduced their exposure to crude oil in recent weeks. A bullish sign?
The Eurozone: The recent strength in the Eurozone’s currency has pushed out the likelihood of an ECB rate hike until 2019. The central bank has become concerned that a strong euro could bring back disinflationary pressures and tighten financial conditions.
Emerging Markets: This chart shows the bounce in India’s banknotes in circulation after last year’s demonetization.
Equity Markets: North Korea’s latest nuclear weapon test and the subsequent preparation to test an ICBM (see story) brought jitters back into the market.
Food for Thought: Nuclear tests since 1945.
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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