June 1, 2022

China Economic Update – June 2022

Low cost outlier: China’s consumer price growth has remained weaker than most international peers.

  • A common theme across the global economy since early 2021 has been the acceleration in consumer prices. While major central banks initially argued that these inflationary pressures were transitory, they have persisted, in part due to supply side constraints that remain unresolved. Globally, we estimate that consumer prices rose by around 7.9% yoy in April 2022, while among the seven largest advanced economies (the G7), prices increased by 6.9% yoy – the largest increase since mid-1982.
  • That said, prices have not risen uniformly across the globe, with China being a notable outlier. In April, China’s consumer price index rose by just 2.1% yoy. There are a broad range of factors that have contributed to this comparative softness, with some being unique characteristics of China’s economy, while others point to underlying weakness.

For further details, please see the China Economic Update (June 2022)

Markets Today – The Cool Out

Markets Today – The Cool Out

1 December 2023

After what has been a solid month for equities and bond investors, month end flows have probably play their part in the price action overnight, US equities have lost momentum, UST have led a rise in core global bond yields and the USD is stronger. US and European inflation releases favoured the notion the Fed and ECB are done with their respective tightening cycles.

Markets Today – The Cool Out
Markets Today – Sweet Spot

Markets Today – Sweet Spot

30 November 2023

Bond markets have been supported by some market-friendly data and while Fed speakers were again mixed, it was the more dovish remarks that captured attention.

Markets Today – Sweet Spot