Featured Market Snapshot
The August jobs report came in with strong headline figures, spooking bond markets already nervous about other signs of growth; Eurozone growth had a solid summer; Argentina and Turkey followed their own paths toward recovery
The countries with the two worst-performing currencies in 2018 are taking very different paths to resolving their challenges; Italy added a second budget conflict to its agenda.
Signals came from both Jackson Hole and Beijing that the greenback might have risen enough, at least for now; Mexico and the U.S. haven’t yet come to an agreement on the level of non-U.S. investment in Mexico’s oil patch.
Turkey's troubles are both significant and specific to its own status; Argentina made some moves, but markets were not impressed; U.S. household borrowers showed discipline in Q2.
July's employment report showed growth continuing; the Fed sounded optimistic about growth in its latest statement; the UK's rate rise was about normalization, not Brexit; China took some market-based steps in the currency market.
U.S. inflation took a brief breather in August; the ECB added some encouraging words to its unchanged stance; Russia's central bank made a normal, if unexpected, rate hike to stave off future inflation.
Turkey's currency crisis spread to European financials, as resolution remained elusive; U.S. consumer prices strengthened; China's central bank reiterated its policy stance in its latest quarterly report.
The U.S. economy grew 4.1% in Q2, supported by consumer spending and exports; growth and moderate inflation in the Eurozone continued to make progress; Brexit hit yet another roadblock as the deadline loomed larger.
The Fed's Beige Book gave a glimpse of the future impact of the labor shortage – and the trade conflicts; copper prices showed the impact of possible future trade weakness on today's demand; the UK and the EU get down to business on finding a workable compromise on a post-Brexit border in Ireland.
U.S. workers are getting raises the old fashioned way – by changing jobs; Mexico's new president-elect has had the apparent backing of financial markets so far; China's currency policies remained unchanged in the face of strong external pressure on trade.
Inflation hit the 2% target and personal spending picked up in May; The 28-member European Union found a way to agree on immigration policy; Mexico's election looked set to mark a significant change in direction.
OPEC made a deal to hike production by 1 million barrels – and included Russia; Emerging Market election season begins with Turkey; European service growth beat expectations for June; U.S. tax revenue from its metals tariffs netted nearly $800 million so far; the costs have yet to be tallied.
Chairman Powell's FOMC was brief, clear and optimistic; trade relations between the U.S. and China remained challenging; Europe's central bank shared its playbook for the next year and more; Russia and Saudi Arabia met about oil and more.
Latest U.S. data show more jobs than job-seekers; Brazil and Argentina struggle to slow the sliding value of their currencies; G7 leaders share sharp comments ahead of their weekend summit meeting.
A fairly strong U.S. jobs report for May cheered stock markets and dented bonds slightly; another outbreak of tariff trauma got much attention, a round of musical deck-chairs played out in capitals of two of the more troubled European economies.
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