One key development of the week (beyond brent hitting $90) has been stronger than expected macroeconomic data - e.g the ISM services (see data table below from Markets & Mayhem)
Indeed what we are seeing in the last ISM Services PMI reading may not be the best news for the inflation situation: 1) New orders growing faster 2) Employment growing faster (from being nearly flat m/m) 3) Prices rising faster And the market reaction - stocks pulling back - means that good macro news is bad news for the market again. Indeed, while a growing economy supports rising corporate profits (which is a positive), a too strong economy would imply a more hawkish FED than it is currently anticipated by the market.
At least there is deflation somehwre...
The average price of a used #Tesla has declined 13 months in a row, moving from a record high of $67,900 in July 2022 to a record low of $41,574 in August 2023 (-39%). Source: Charlie Bilello
European stocks are becoming very disconnected from macroeconomic data
Source: Cheddar Flow, Bloomberg
6 Potential Problems for China’s Economy
Source: Barchart
Total Global Debt is now estimated to be over $300 Trillion and has been rising exponentially since 1971
Source: TheBTCTherapist
India's driest August in more than 100 years may force the country to impose additional export restrictions!
Source: Barchart, Bloomberg
A wave of corporate debt refinancing over the next 6 months will spark a recession in 2024 warns Fidelity International
Source: Barchart, Bloomberg
Less can be more
By PsycheWizard
