Highlights of key economic statistics from last week compiled by Putnam Investments.
- Import prices fell 0.6% and export prices declined 0.3% in November, the Bureau of Labor Statistics reported.
- The CPI rose 0.1% and core CPI increased 0.2% in November, according to the Bureau of Labor Statistics.
- Initial jobless claims fell by 20,000 to 211,000 in the week ended December 10, 2022, according to the Department of Labor.
- As of December 8, 2022, of the 493 S&P 500 Index companies reporting third-quarter earnings, 340 beat analysts’ estimates, according to S&P Dow Jones Indices.
- The NFIB Small Business Optimism Index rose slightly in November but remained below its 49-year average.
- Eurostat reported euro area annual inflation declined to 10.1% in November from 10.6% in October.
- The ZEW Indicator of Economic Sentiment for Germany increased in December.
- Eurostat reported euro area industrial production fell 2.0% in October compared with September.
- The yield on the 10-year Treasury note declined.
- The European Central Bank voted to raise three key interest rates by 75 basis points.
- The Bank of England decided to raise the bank rate by 50 basis points.
- The Federal Reserve voted to raise the target range of the federal funds rate by 50 basis points.
- High 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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