US equities: absolute & relative valuations offer a different perspective
•On the positive side, market (absolute) valuations have improved as stock prices have dipped and earnings have held up •On the negative side, the rise in bond yields imply a lower Equity Risk Premium (ERP), now at 39bps (19-year low), i.e equities are more expensive vs. bonds than at the start of the Summer... Source: Edward Jones, BofA
The number of unicorns is plummeting
Since 2018, over 250 new unicorns have been minted each year, with the exception of 2021, when this number spiked to 787 – a rate of more than two unicorns per day. In 2022, new unicorn creation collapsed in 2022. Peak to trough there was a 90% drop in the new unicorn rate within five quarters. Just 21 new unicorns were created in Q1 2023. Source: Dealroom.co, TME
The Bank of Japan is purchasing government bonds at a record pace this year
A factor that likely prompted its recent move to allow larger yield movements to reduce the strain on its control of longer-term #interestrates. Source: Bloomberg
Disinflationary forces are intensifying in Germany
Producer Prices drop for 1st time since 2020, a good leading indicator for Consumer Prices. In July, producer prices (PPI) fell by 6.0% YoY, the biggest decline since October 2009, when the financial crisis has caused prices to collapse. Last year, the prices received by manufacturers for their goods had at times risen at a record rate of 45.8%. Source: HolgerZ, Bloomberg
Solo miner bags entire block reward with just 1PH of power
An astoundingly lucky solo miner solved block number 803,821 late Friday night and won the entire 6.25 bitcoin block reward, worth approximately $162,000.
Con Kolivas, the admin of Solo CKPool, announced the unlikely news on X, formerly Twitter, saying that this particular miner had only 1 petahash of computing power, yet still came out on top. “A miner of this size would only solve a block solo on average once every 7 years at current [difficulty],” Kolivas wrote. The miner kept nearly all the bitcoin (BTC) he won, aside from a 2% fee that went to Solo CKPool for its upkeep.
Source: Blockworks
Treasury 10-Year real yield tops 2% for first time since 2009
The yield on 10-year inflation-protected Treasuries extended its ascent from year-to-date lows near 1%.
Rising real yields reflect firmer economy and higher deficit.
Source: Bloomberg
Vinci retesting breakout triangle level
Vinci (DG FP) retested and bounced on support level 100 last week. This level represents the top of the triangle (January breakout and March retest). Source : Bloomberg
Europe Consumer Staples Sector Index on support level
Europe Consumer Staples Sector Index (SEUCONS Index) rebounded Friday over support 3'090 with a Hammer reversal candel. It's also back over 3'120 support level. Keep an eye at this zone. Source : Bloomberg
