Market Round Up: U.S. shoppers, Brexit hard or soft, China housing

by | 17 Jul, 2018

 

U.S. Shoppers keeping the lights burning

Data released Monday showed that US headline retail sales rose 0.5% in June, in line with market expectations. The report also included an extensive upward revision to the May retail sales figure from 0.8% to 1.3%.

Strong retail sales figures indicate that consumer activity rebounded in Q2 while a tight labour market and lower taxes supported solid gains in household purchases. So everything looks hunk dory.

Meanwhile, not wanting to sound like a moaning Cassandra, a widening in bond risk premiums could be construed as a sign of a market slowdown. Data from Moody’s suggests that the $9 trillion U.S. corporate bond market has seen spreads on corporate bonds against U.S. Treasuries widen in July. Best keep an eye out – both ways.

 

Looking for a glimmer of cheer in Brexitland

In the UK it will be a busy day ahead with June employment figures due.

Real wage growth has been weak for some time, leading to the lower rate of consumption demand; which is expected to be reflected in retail sales data that due out Thursday. This data is important in the face of the rising levels of uncertainty surrounding Brexit.

Prime Minister Theresa May won a series of votes in Parliament on Monday, keeping her over-arching strategy to leave the European Union just about on track after bowing to pressure from hard Brexit supporters in her party. Today’s key event will be the voting on May’s Trade bill which has the contentious issue of remaining in a customs union with the EU.

 

 

China house prices still on the up

Home prices in China rose at their faster month-on-month pace in 21 months this June. This underscores how the Chinese economy is still subject to strong speculative pressures despite an official deleveraging campaign.

The sector could also lag the more productive sectors if the deleveraging continues to bite, leading to more systemic consumption suppressing effects, if it filters down.

Meanwhile, Asian equity markets have sagged in response to the downside pressure on oil prices, following the lead from Wall Street’s energy stocks. No doubt this will filter through to European stocks this morning, too.

Want to learn more about the markets and how to become a better investor?

Download the Invstr App now.

Avengers Crushes Box-Office Records

All emails include an unsubscribe link. You can opt-out at any time. ​See our privacy policy.

ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

Download on the App Store           Download on Google Play

ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

Share This