China’s central bank cutting it interest to stimulate the economy
China’s economy is nearing a crisis due to missed activity data since the second quarter. Growth concerns arose during the 2008-09 global financial crisis and the 2015 capital outflow fear. China’s debt-fueled investment in infrastructure and property has peaked, and household consumption is its only remaining demand source. China’s recovery depends on whether households spend…
Crude production reached its highest since 2020
The Energy Information Administration reported that US crude oil stockpiles declined last week due to increased run rates and increased exports. Refinery crude runs climbed to 16.75 million barrels, the most since January 2020, and refinery utilization rose to 94.7% of capacity. A weekly increase in US oil exports also depleted stocks, with net imports…
UK Core inflation steady from June, and Service inflation climbed more than expected
The Bank of England’s price growth gauges failed to decrease in July, raising concerns about chronically high inflation in Britain. The Office for National Statistics reported a 6.8% annual consumer price inflation rate, down from 7.9% in June. This was welcomed by British consumers who have had higher inflation than most industrialized nations. However, new…
China’s is facing a deflation because of weakened trade and loan
PIMCO predicts that China’s deflationary pressures could spread to global markets, potentially helping Western central banks contain inflation. The consumer sector plunged into deflation in July, and factory-gate prices fell. PIMCO Economist Tiffany Wilding suggests that the economic downturn could lower inflation in China and markets served by Chinese exports. Persistent deflation in China would…
The FED raising interest will be a crucial signal to the bond and stock market
The degree to which policymakers feel the Federal Reserve has finished raising interest rates and assessing the economic risks of rapid monetary tightening may be revealed in the minutes of policy meetings. The Federal Reserve hiked its benchmark overnight interest rate at its meeting on July 25–26 to 5.25%–5.50%, which might not be the last…
US retail sales data surpass expectation
Global equities slumped on Tuesday due to US retail sales beating expectations and China reducing rates. The S&P 500 plummeted 0.9 percent in early trade, while the tech-focused Nasdaq Composite fell 0.8 percent. The Stoxx Europe 600 fell 1%, the Cac 40 fell 1.2 percent, and the Dax fell 0.9 percent. US government bond yields…
Sterling rose after unemployment rate jumped
Sterling surged on Tuesday due to record-pacing British basic salaries, causing the Bank of England to worry about inflation. The yuan fell to a nine-month low after China’s central bank cut key policy rates. The Russian rouble gave up early gains after the central bank raised its benchmark interest rate to 12%. The pound was…
US economic growth with increasing on consumer spending
Consumer spending in the United States supported economic growth in 2023, prompting economists to postpone recession predictions. Consumer expenditure is expected to rise 2.3% in 2023 and 1.1% in 2024, according to Bank of America’s economics team. However, Savita Subramanian, BofA equity and quant analyst, believes that Consumer Discretionary equities should be priced differently. Retail…