June 26, 2023
United States:
Where Stock Market Is Headed After Wild First Half: Five Charts
As a dizzying first half for US stocks draws to a close, the Nasdaq 100 Index is poised for its best opening six months to a year ever, and Wall Street is growing concerned that the Federal Reserve will derail the rally.
Optimism that the US central bank is approaching the end of its tightening campaign helped transform the technology-heavy gauge from 2022’s market underachiever to 2023’s early champion, with a surge of 36% erasing last year’s 33% slump.
Europe:
German Business Outlook Plummets as Recession Shadow Lingers
Germany’s business outlook deteriorated to the lowest seen this year, evidence that Europe’s biggest economy is struggling to cement a recovery after a recent recession.
An expectations gauge by the Munich-based Ifo institute fell to 83.6 in June from 88.3 in the previous month. The outcome was much worse than anticipated by any economist in a Bloomberg survey. A measure of current conditions also fell.
Asia:
China Economy Gloom Worsens With Weak Consumer Spending Data
China’s consumer-driven recovery is showing more signs of losing momentum as spending slows on everything from holiday travel to cars and homes, adding to expectations for more stimulus to support the economy.
Domestic travel spending during the recent holiday for the dragon-boat festival was lower than pre-pandemic levels, according to official data released this weekend. Home sales figures are below the level in previous years, while estimates for June car sales showed a drop from a year ago.
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