Fri, Jul 14 2023 3:48 PM EDT
Global headline inflation appears to have peaked, says IMF
Among the Group of 20 nations, headline inflation seems to have peaked, according to the International Monetary Fund. However, in most of the G20 countries, particularly the advanced economies, core inflation remains well above central banks’ targets.
“In the fight against inflation there are some early signs of monetary policy transmitting to activity, with bank lending standards tightening in the euro area and the United States. That said, policymakers should avoid ‘premature celebrations’: lessons from previous inflationary episodes show that easing policy too early can undo progress on inflation,” IMF managing director Kristalina Georgieva wrote in a Friday note.
The IMF forecasts global growth over the medium-term to fall around 3%, lower than the historical average of 3.8% over 2000 to 2019.
— Hakyung Kim
Thu, Jul 13 2023 11:23 PM EDT
International Monetary Fund says China’s growth is slowing
The International Monetary Fund said that growth in China is slowing due to weaker private investment as well as slowing exports and reduced domestic demand.
The organization’s spokesperson Julie Kozak said in a briefing, “Growth momentum has been slowing recently in China, largely due to weaker than expected private investment” pointing to a recent decline in exports after seeing strong performance in the first quarter of the year.
“The overall picture for growth in China is one of a slowing economy, and that is consistent with the forecast that we that we had in in April,” noting an “updated forecast” for China will be reflected in IMF’s next World Economic Outlook.
— Jihye Lee
Fri, Jul 14 2023 12:48 PM EDT
Investors count on upward market momentum in the week ahead as earnings rain down
Stocks could continue to gain momentum in the week ahead as traders turn their attention to earnings results after the past week’s softer inflation news.
The major benchmarks are headed for a positive week Friday after encouraging consumer and wholesale inflation in June cemented the likelihood that the Federal Reserve is closer to the end of its rate-hiking campaign. Traders see a 95% certainty the Federal Reserve will hike at the central bank’s July meeting, according to the CME Group’s FedWatch Tool. They’re 81% sure the Fed will stand pat in September.
“I think the Fed is kind of locked in for another hike,” said Sage Advisory’s Rob Williams. “But given this inflation data, I think they’re kind of one and done.”
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— Sarah Min
Fri, Jul 14 2023 1:51 PM EDT
More than a third of Friday’s new 52-week highs in S&P 500 are all-time records
More than one third of the 32 stocks making new 52-week highs in the S&P 500 Friday are also trading at all-time records. Three of the 32 (JPM, V, CRM) are also in the Dow Jones Industrial Average. Three of the all-time highs are homebuilders. And then there’s Nvidia, of course:
- Netflix, trading at highest since Feb. 2022
- Booking Holdings, trading at record high back to 1999 IPO
- D.R. Horton, all-time high back to 1992 IPO
- Lennar, all-time high back to start of trading in 1971
- PulteGroup, trading at all-time high back to its IPO in 1972
- CBOE Holdings, all-time high back to 2010 IPO
- Intercontinental Exchange, highest since April 2022
- JPMorgan (JPM), highest since Feb. 2022
- Moody’s, highest since Feb. 2022
- S&P Global, highest since April 2022
- Visa, highest since August 2021
- Align Technology, highest since April 2022
- Cooper Companies, highest since April 2022
- DexCom, highest since Dec. 2021
- IDEXX Laboratories, highest since April 2022
- Intuitive Surgical, highest since Jan. 2022
- Steris, highest since June 2022
- Copart, all-time high back to 1994 IPO
- Masco, highest since Feb. 2022
- Rollins Inc., highest since 1968 start of trading
- Adobe, highest since Feb. 2022
- Ansys, highest since Jan. 2022
- Cadence Design Systems, all-time since predecessor ECAD went public in 1987
- Salesforce.com, highest since Feb. 2022
- Fortinet, all-time high back to 2009 IPO
- Gartner, highest since Nov. 2021
- ServiceNow, highest since March 2022
- NVIDIA, all-time high since 1999 IPO
- ON Semiconductor, all-time high since 2000 IPO
- Teradyne, highest since April 2022
- Sherwin-Williams, highest since June 2022
- Equinix, highest since Jan. 2022
Meanwhile, just five stocks fell to 52-week lows in the S&P 500 Friday, none of them records, although AT&T touched a 20-year low:
— Scott Schnipper, Christopher Hayes
Read More: Asia markets set to fall ahead of key economic data from China