Highlights of key economic statistics from last week compiled by Putnam Investments.
- Housing starts fell 2.0% in June compared with May, the Census Bureau and the Department of Housing and Urban Development stated.
- Existing home sales fell 5.4% in June, the National Association of Realtors found.
- Initial jobless claims rose by 7,000 to 251,000 in the week ended July 16, 2022, according to the Department of Labor.
- As of July 14, 2022, of the 31 S&P 500 Index companies reporting second-quarter earnings, 22 beat analysts’ expectations, according to S&P Dow Jones Indices.
- The European Commission’s Flash Consumer Confidence Indicator for the euro area fell in July.
- Eurostat reported euro area annual inflation rose to 8.6% in June from 8.1% in May.
- Eurostat stated euro area construction output rose 0.4% in May compared with April.
- The yield on the 10-year Treasury note traded in a range.
- The Bank of Japan held rates steady.
- The European Central Bank decided to raise its benchmark interest rates by 50 basis points.
- 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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