July 24, 2024
United States:
The US Economy Is Slowing, Which Is Just Fine With the Fed
Having boomed its way through 2023, the US economy is coming back to earth.
Companies are hiring fewer workers. Consumers are spending less. The housing market is all but paralyzed by the highest interest rates in decades. Manufacturing is struggling, with the exception of sectors benefiting from government incentives, such as semiconductors and electric vehicles. And even as inflation slows, business and households continue to complain of a sting from high prices.
Europe:
Euro-Zone Growth Grinds to Halt on Surprise German Slump
Euro-area private-sector activity barely grew this month as its top economy unexpectedly slumped.
S&P Global’s composite Purchasing Managers’ Index fell to 50.1 in July, according to data published Wednesday. While that’s above the 50 level that signals growth, it’s the worst reading since February and worse than economists had predicted in a Bloomberg survey, which saw the measure holding steady at last month’s 50.9.
Asia:
Yen’s Rally Gains Steam With Global Carry Trades in the Balance
A rapid move higher for Japan’s yen showed little sign of slowing on Wednesday, barreling through key levels against the US dollar and other peers.
The currency rose more than 1% against the greenback after breaking through the key psychological threshold of 155 per dollar and blowing past the pair’s 100-day moving average for the first time since mid-March. Analysts attribute the shift to an unwind in global carry trades, which use low-yielding currencies like the yen to fund investments in higher yielders such as Mexico’s peso or the Australian and New Zealand dollars.
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