Holly Thompson
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Equities at record highs as US inflation descends
US consumer prices fell unexpectedly in April, while import prices surged by 0.9%. Retail sales and industrial production stagnated, signaling a slower Q2 start. German investor sentiment hit a high, and China’s recovery remains manufacturing-driven. The US dollar weakened despite hawkish Fed comments.
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Rise in US jobless claims overshadows dovish BoE
A strong earnings season and soft US data, supporting the case for interest rate cuts, gave investors the green light to switch into a risk-on mode. Pro-cyclical currencies cheered.
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Powell trumps inflation, weakening the dollar
In a tumultuous week, the yen surged with suspected Japanese intervention, while the US dollar faltered on a dovish Fed and a colder-than-expected US jobs report. Rate cut speculation returns ahead of the upcoming Bank of England meeting.
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Markets ignoring sticky inflation as big week looms
The conclusion of the week has been that US inflation remains sticky while US exceptionalism on the growth side is waning. Markets were mixed though, with equities rising, yields stamping new 5-month highs but the US dollar sliding against most peers.
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Global risk aversion grips markets
US 2-year yield closing in on 22-year high. EUR/CHF eyeing lowest weekly close on record. Pound buckles under global risk aversion.
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Markets cautiously cheer China’s data
Strong US data amid rising tensions. UK stagflation fears persist. Euro is hoping for a Chinese comeback. CAD softer after inflation miss.