Treasury yields extend retreat from year’s highs after GDP data
Short-maturity yields led the move, with two-year yields declining about five basis points to around 4.85%, and most yields reached the lowest levels in more than two weeks. The
benchmark 10-year note’s yield touched 4.085%, the lowest level since Aug. 11.
Following downward revisions to the economy’s Q2 growth rate and related inflation measures, swap contracts tied to Fed meeting dates priced in slightly less than a 50% chance of another rate increase this year. Source: Bloomberg
Germany's inflation drops to 6.1% in Aug from 6.2% in July while Core inflation stagnates at 5.5%
BUT 6.1% headline reading was 10 basis points above market predictions as energy prices accelerated to 8.3% in Aug from 5.7% in Jul. Food price inflation slowed to 9% in Aug from 11% in July. Source: HolgerZ, Bloomberg
Hong Kong Dollar is on track for its biggest monthly loss against the US Dollar in 38 years
source: Bloomberg, Barchart
EGGFLATION... With the price of eggs up +13% yesterday and +33% for the month, consumers are shelling out more and more for groceries
Thank you Hedgeye for the great cartoon Source: WallStreetSilver, WSJ
German wages rose at a record annual pace of 6.6 per cent in the second quarter, boosting consumer spending power but fuelling concerns about inflation being pushed up by rising labour costs
The increase, which compared with wage growth of 5.6 per cent in the previous quarter, was the highest since collection of the data began in 2008. It took German annual wage growth above the country’s consumer price inflation rate — 6.5 per cent in the period — for the first time since 2021. Source: FT
The importance of Nvidia and Tesla for the US equities market
Source: Mac10
Equinix back over major level
Equinix (EQIX US) has been consolidating for the last month and is now back again over major resistance 769. Next resistance level is 850. Source : Bloomberg
Mastercard breakout
Mastercard (MA US) broke in July major resistance zone 390-395. Since then, there was a 6 weeks consolidation but remained over the 390 level on all weekly closings. This week breaking the 405 highs and confirming breakout. Source : Bloomberg
