Highlights of key economic statistics from last week compiled by Putnam Investments.
- New home sales rose 1.1% in February compared with January, the Census Bureau noted.
- Existing home sales jumped 14.5% in February, the National Association of Realtors found.
- Initial jobless claims fell by 1,000 to 191,000 in the week ended March 18, 2023, the Department of Labor reported.
- As of March 2, 2023, 68% of S&P 500 Index companies reported actual EPS in the fourth quarter that exceeded estimates, according to FactSet.
- The ZEW Indicator of Economic Sentiment for Germany declined in March.
- Eurostat reported the euro area trade deficit increased in January.
- Germany’s Federal Statistical Office noted industrial producer prices declined 0.3% in February compared with January.
- The yield on the 10-year Treasury note declined.
- The Bank of England decided to increase the bank rate by 25 basis points.
- The Federal Reserve raised the target range of the federal funds rate by 25 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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