Market Update – January 27 – Strong US data = Soft Landing ?
The major US economic data yesterday (Q4 GDP lower; 3.9% from 4.2% but better than expected 3.6%, strong consumer spending, Durable goods, New Home Sales, Lower Inventories and Weekly Claims at new 22-mth lows) all added to the soft landing, disinflation, scenario for the US economy. A FOMC 25bp hike next […]
“Soft landing” is the new “transitory inflation” – “markets look vulnerable”
BNP Paribas saying its way too early to dismiss recession fears (Deutsche Bank says the same, more to come from them below). BNP: “Soft landing” has been the catchphrase of a still-young 2023. But we think it will go out the window in the same fashion as “transitory inflation” did in 2022. As growth slows […]
Seeing path to soft landing for US economy
US Treasury Secretary Janet Yellen told the NPR on Friday that inflation has been quite moderate for the last six months but noted that rent indexes were still rising. Yellen further added that she was expecting rent indexes to come down substantially in next six months and said that she sees a path to loft […]
US dollar sinks on hard landing fears after ISM services survey plunges
The ISM services sector survey is one of the best forward looking indicators out there and today’s edition plunged to 49.6 from 56.5, far worse than the economist consensus of 55.0. Even worse, the forward-looking new orders component in the survey looks like this: ISM new orders Market participants are struggling with the idea of […]