Highlights of key economic statistics from last week compiled by Putnam Investments.
- Existing home sales dropped 5.9% in July, according to the National Association of Realtors.
- The Conference Board Leading Economic Index decreased in July.
- Housing starts dropped 9.6% in July compared with June, the Census Bureau stated.
- Initial jobless claims fell by 2,000 to 250,000 in the week ended August 13, 2022, according to the Department of Labor.
- As of August 11, 2022, of the 453 S&P 500 Index companies reporting second-quarter earnings, 339 beat analysts’ expectations, according to S&P Dow Jones Indices.
- The ZEW Indicator of Economic Sentiment for Germany decreased in August.
- Eurostat noted euro area annual inflation climbed to 8.9% in July from 8.6% in June.
- Euro area GDP grew 0.6% in the second quarter, according to Eurostat.
- Eurostat stated the euro area posted a trade deficit in June.
- The yield on the 10-year Treasury note increased.
- Rising energy prices, worsened by the Russia-Ukraine War, increase the risk of stagflation and recession, even as central banks seek monetary policy normalization.
- Declining liquidity and deteriorating financial conditions, combined with high valuations, are contributing to a substantial uptick in risk asset volatility.
- Global leverage is at worrisome levels and will eventually need to be paid for, at a time when most developed markets are facing a fiscal drag from the end of post-pandemic stimulus.
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All economic and performance information is historical and does not guarantee future results. The views and opinions expressed are those of Putnam Investments, are subject to change with market conditions, and are not meant as investment advice.
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