Why wouldn’t it be?
Both residential and non-residential construction spending continue to grow in the United States. Total construction spending for May 2018 was an annualized $1.31 trillion, up from $1.25 trillion in May 2018.
Continue reading “Construction Spending continues to grow at a rapid pace in the United States”
Everyone seems to be focussing on the equity markets recently, but equity markets haven’t really moved much over the past one month. Over the past month, major equity markets have lost between 1.5% to 4%.
The real action is in bonds and commodities. And trade seems to be flourishing too.
10-year government bond yields of major economies are lower by 5% to 40% (in relative terms not absolute terms) in just the past month. 10-year German bonds are down 12 bps over the past month. That wouldn’t sound much but they are down 28% from 42 bps to 30 bps. U.K. yields are down 8%, U.S. yields down 5%, Japanese yields down 40%. Even Greek yields are down 20% over just the past month. Does the market anticipate a pause in interest rate rises? It would appear so.
Continue reading “Something strange is happening in the global economy right now”