Mixed messages continue to be thrown off by the U.S. economy, and this week we can add retail sales and consumer inflation for May to the list of economic indicators that continue to disappoint analysts’ expectations.
- The three-month moving average on retail sales is running at about half the pace seen over the past 12 months.
- Inflation is showing signs of moderation after a sharp rebound in the first quarter.
- The combination of a somewhat less dovish Fed and diminishing growth and inflation expectations is compressing the Treasury yield to an extent that rivals the lows of the expansion.
- Bank credit has already tightened for CRE and auto lending, while loan demand has weakened pretty much across all segments.
Both stock and bond markets pushed stubbornly higher in May even as adverse political news in the U.S. and the U.K. dominated headlines.Read More ›
While it hasn’t seen the same tabloid excitement as the Brexit, the EU-Singapore Free Trade Agreement has been in the works for over a decade.Read More ›
The trade relationship between the U.S. and its largest trading partner is being reshaped.Read More ›
Global stock markets churned during the month of April alongside the ebb and flow of geopolitical risks around the world.Read More ›