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The United States: The ISM PMI report showed a sudden acceleration in cost inflation, which we saw in the regional Fed data.
Equities: Stock-bond correlations remain elevated.
Rates: The US neutral real policy rate, or R-star, remains very low. MRB Partners expects the Fed to upgrade its median estimate of R-star, and the future policy rate path will follow a much higher trajectory. (2 charts)
The Eurozone: Germany’s factory orders tumbled in July.
Europe: Poland’s central bank delivered an aggressive rate cut (the market expected a 25 bps reduction).
Commodities: Copper prices have declined this year despite higher demand, which was probably due to the green energy transition and scrap production.
Food for Thought: This summer was the hottest on record:
Edited by William Villacis
Contact the Daily Shot Editor: Brief@DailyShotResearch.com
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