U.S High Yield credit spreads hit 500bps !
📈 The Markit CDX North America high yield index has surpassed the 500bps mark for the first time since March. This index serves as a reliable measure for tracking the upper quality of the US high yield market. 💰 While absolute yields may seem appealing, it's important to note that US high yield credit spreads are not cheap and could potentially widen further. This could be influenced by the sharp tightening of bank lending standards, the drop in US PMI/ISM surveys, and the gradual deterioration of the US employment market. 📉 Despite solid fundamentals at the moment, it begs the question: Do the current levels of US high yield credit spreads indicate an imminent rise in defaults or a forthcoming recession? Source : Bloomberg.
Bitcoin miner Marathon Digital hit with another SEC subpoena
Marathon Digital announced on Wednesday that it has received a recent subpoena from the Securities & Exchange Commission (SEC), which is linked to an ongoing investigation into the company's data center located in Montana. The investigation focuses on possible breaches of securities laws. This new subpoena comes after Marathon Digital and a few of its executives were issued a related subpoena earlier in the quarter ending on September 30, 2021. The previous subpoena required them to produce records and communications pertaining to the facility located in Hardin, Montana. Source: Blockworks
The U.S. government's interest expense is now an annualized $928.9 billion
Source: Jeff Weniger
China Inflation Weakens to 2-Year Low on Uneven Recovery
China’s consumer inflation slowed to the weakest pace in two years in April while producer prices fell further into deflation, fueling debate about whether more policy stimulus is needed. The consumer price index rose 0.1% last month from a year earlier, the National Bureau of Statistics said Thursday, reflecting muted domestic demand as well as base effects from last April’s Shanghai lockdown. Core CPI, which excludes volatile food and energy costs, was unchanged at 0.7%. Producer prices fell 3.6% in April as commodity costs softened. The figure was more than March’s drop and deeper than economists had expected. Source: Bloomberg
Can Airbnb hold next support level ?
Airbnb has tumbled the most ever after giving muted travel outlook. Can it hold next support level zone 106.50-108.50 ? Source : Bloomberg
US inflation continues to cool down
US April CPI inflation +4.9% year/year vs. +5% estiated & +5% in prior month … Core CPI +5.5% year/year vs. +5.5% est. & +5.6% prior
The correlation between stocks and bonds has become very negative again!
📊 The 50-day correlation between US stocks and the intermediate part of the US Treasury yield curve has hit its lowest level since 2021. This may have been driven by the fact that bond volatility has declined (although it remains at a high level) and the economic outlook is increasingly uncertain. 💼 In light of this, bonds remain a crucial component of a well-diversified multi-asset class portfolio, especially as we navigate the increasingly uncertain second half of 2023. 📈 Will bonds regain their status as a safe asset? Source : Bloomberg
NVIDIA breakout ?
After an incredible 170% rallye over the last 8 months, will NVIDIA (NVDA) have enough strength to break major resistance at 290 ? Source : Bloomberg
