Market Commentary

US Purchasing Power, Inflation and Unemployment

US consumers powered the recovery following the pandemic but high gasoline and energy prices and food and housing costs have eroded their purchasing power. Real consumption spending accelerated to 7.9% in 2021 but may ease to 2% in 2022, and then to 1% in 2023. There are already signs of an economic slowdown globally; other […]

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Uncertainty Clouds the Outlook

An anti-goldilocks economy refers to the global economy where policymakers are confronted with a stagflationary supply shock, which is negative for growth and will tend to push up inflation further. In the current market condition, inflation is “too hot,” as evidenced by the higher energy and food prices, as well as the disrupted supply chains […]

Market Recap Monday, December 24, 2018

On global equities Volatility in global equity markets persisted in November, fears of rising interest rates, multiple trade conflicts, the end of QE, and related uncertainty about the global economic outlook weighed on sentiment and set the market on edge. Additionally, U.S. crude ended last week down 11% at $45.59, posting the worst performance since […]

Market Recap Friday, October 13, 2017

In Brief U.S.: PPI ticking higher and inflation not dead; small business confidence peaking with D.C. risk; jobless claims still low Eurozone: Another good month for Eurozone sentiment; structural reform tough, but Catalonia risk contained and a second wind for sentiment; Emmanuel Macron has challenged EU leaders to sort out reform of the bloc within […]

Market Recap Friday, October 6, 2017

In Brief U.S.: Economic activity in both manufacturing sector and non-manufacturing sector continued to expand in September 2017; light vehicle sales in September realized the first gain of the year; weekly jobless claims fell more than expected Eurozone: The final IHS Markit Eurozone PMI Composite Output Index increased in September; recovery continued to firm according […]