July 13, 2023
United States:
US Producer Prices Approach Deflation With 0.1% Annual Rise
US producer prices barely rose in June from a year earlier, another sign of cooler inflation that will likely comfort Federal Reserve officials.
The producer price index for final demand rose 0.1% from a year earlier, the smallest advance since 2020, according to data out Thursday from the Bureau of Labor Statistics. On a monthly basis, the PPI also increased 0.1% after falling in the prior month.
Europe:
European Stocks Rise for a Fifth Day as Swatch Jumps After Beat
European stocks extended gains to a fifth day as another sign of cooling US inflation fueled optimism that the Federal Reserve is nearing the end of its interest rate hiking campaign.
The Stoxx 600 Index rose 0.7% by 2:18 p.m. in London, marking the gauge’s longest winning streak since April. Tech and mining subgroups outperformed, while construction stocks were laggards.
Asia:
Investors Slash China Local Government Bond Tenors to Shortest On Record
Investors in China’s local government financing vehicles are cutting the length of time they are prepared to extend credit and demanding higher returns, as cracks appear in the $9.1 trillion market.
In the first half of 2023 the average tenor — the length of time before a debt matures — of onshore LGFV bond issuance fell to 2.51 years according to Bloomberg calculations. That’s down from 2.95 years in 2022 and the shortest since at least 1999 when the data series began.
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