Federal Reserve’s officials and policymakers are surely thinking about cutting interest rates, but one important question is yet unanswered: how will consumer spending patterns affect this choice? Generally speaking; higher interest rates would cause consumers and corporations to reduce their expenditure. Stock prices will retreat as a result, and earnings …
Read More »Global Markets – Stocks struggle on mixed earnings, high Treasury yields
Global stock markets saw a decline on Thursday as US Treasury yields remained close to 5%, the country’s economy grew faster than anticipated, and corporate earnings were mixed.According to data, the third quarter saw the fastest rate of growth in the US economy in almost two years. This was despite …
Read More »Waller: Fed can wait before making any interest-rate decisions
Federal Reserve Governor Christopher Waller was an advocate for interest rate hikes last year. According to Waller, ‘Too soon to tell’ if economy will cool or prices heat up. The Federal Reserve needs to “wait, watch and see” how the economy evolves before making any interest-rate moves, said Fed Governor …
Read More »What does Canada’s retail sales data reflect about consumer spending?
May saw a 0.2% growth in Canadian retail sales, somewhat less than the predicted 0.5% gain. Retail sales only slightly increased in May and the forecast for June shows that the trend persisted. This suggests that Canadian consumer spending was weak even before the Bank of Canada resumed its cycle …
Read More »US dollar, T-yields slide post PCE data
The US dollar and Treasury yields retreated in May due to slowed consumer spending, but futures predict the Fed will resume raising interest rates next month to quell inflation. The core Personal Consumption Expenditures (PCE) price index fell to 4.6%, down from expectations of 4.7%. The PCE index increased by …
Read More »Home Depot’s Q1 earnings send warning signs for US retailers
Home Depot’s weak Q1 earnings send warning signs for other retailers. The revised prediction for Home Depot shows that even more affluent Americans who own homes have started to be frugal with their money. Target and other retailers who report in the upcoming weeks may be worse off due to …
Read More »US consumer sentiment slumps on debt ceiling impasse
US consumer sentiment slumped to a six-month low in May on worries that political haggling over raising the federal government’s borrowing cap could trigger a recession. The University of Michigan’s survey also showed consumers’ long-term inflation expectations jumping this month to their highest reading since 2011, bad news for the …
Read More »Market Drivers – US Session 14/04/2023 Markets are digesting mixed signals amid a state of renewed uncertainty. Not even officials of major central banks know what to do or what they will have on their agendas next. After crucial economic data from the US, what is clear is that the …
Read More »US Consumer spending gradually loses momentum
According to figures released on Friday, US retail sales in March decreased more than was predicted. Analysts claim that the amount of spending is still high, proving that consumers’ underlying resilience has not changed.After an extremely good start to the year, retail sales are declining once more. The amount of …
Read More »Data-wise Canada’s consumer spending still robust
Tuesday’s data showed the declining retail sales in Canada in September by 0.5%. The biggest decline comes from gasoline and is linked to lower prices during the month in question , making sales a little better in volume terms with a 0.1% decline.The advance estimate for October shows a healthy …
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