Is Disinflation Still Good for Markets? (The Answer May Surprise You)
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What’s in Today’s Report:
- Is Disinflation Still Good for Markets? (The Answer May Surprise You)
- Weekly Market Preview: Are Hard Landing Chances Rising?
- Weekly Economic Cheat Sheet: A holiday-shortened week, but still one with important growth updates.
Futures are slightly lower on mixed Chinese economic data and following a quiet summer weekend of news.
Chinese Fixed Asset Investment (4.0% vs. (E) 4.2%) and Industrial Production (5.6% vs. (E) 6.2%) both missed estimates while Retail Sales beat (3.7% vs. (E) 3.0%) leaving the outlook for Chinese growth still mixed (at best).
There were no notable political or geo-political updates over the weekend.
The focus of the data this week will be on economic growth and today we get the first look as June activity via the June Empire Manufacturing Index (E: -12.50). Given recent worries about growth, the stronger this number, the better for the broader markets.
We also have three Fed speakers today, Williams (12:00 p.m. ET), Harker (1:0 p.m. ET) and Cook (11:00 p.m. ET) but again, given last week’s Fed meeting, they shouldn’t move markets.
Finally, markets are closed on Wednesday for observance of Juneteenth (this is a recently new Federal holiday so I just want to make sure everyone was aware of the closure).
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