The recent recovery in U.S. stocks has not been uniformly experienced across the various factor strategies. However, two areas are clearly leading the charge: large-cap growth and momentum. Both of these risk factors have made a stronger comeback, becoming the first to show a positive year-to-date performance, according to various exchange-traded funds (ETFs).
Protests following the George Floyd incident persist across the U.S., though instances of clashes have decreased: CNN
Is President Trump considering a militarized response to the protests? Reuters
Dr. Fauci raises concerns about the long-term efficacy of a coronavirus vaccine: CNBC
American businesses are cautiously observing Hong Kong, but no plans to relocate have emerged yet: CNN
China’s Services PMI saw a significant rebound in May as the economy reopened: IHS Markit
Although the Eurozone Composite PMI improved slightly in May, it still indicates recession: IHS Markit
Is a negative interest rate necessary for the U.S. economic recovery? CNBC
Global manufacturing activity showed signs of recovery in May but is still deeply recessed: IHS Markit
The long-term outlook for the Global Market Index (GMI) risk premium saw an increase in May, marking a rise for the second consecutive month after a series of declines earlier in the year. Currently, the annualized total return estimate for the GMI stands at 4.5%, reflecting a long-term projection above the “risk-free” rate, grounded in a risk-centered model proposed by Professor Bill Sharpe (details below).
President Trump is contemplating the use of military forces to quell the protests: Bloomberg
The Congressional Budget Office (CBO) forecasts a sluggish economic recovery in the U.S. after major losses in Q2: CBO
Plans for reopening the U.S. economy face challenges from ongoing city protests: NY Times
G7 members are divided over Trump’s proposal to reinstate Russia: BBC
The U.S. dollar’s status as a safe haven faces new hurdles: Reuters
U.S. construction spending decreased less than anticipated in April: MW
Manufacturing Recession eased slightly in May, according to PMI survey data: IHS Markit
The U.S. ISM Manufacturing Index saw minor improvement in May but remains deep in recession: ISM
Asset prices demonstrated a continued recovery in May, building on April’s widespread gains. This time, commodities led the charge, contributing significantly to the overall positivity in global markets last month.
Protests over George Floyd’s death continue nationwide: Reuters
Is there a risk that these protests could trigger a second wave of COVID-19 infections? NY Times
Is Russia’s newly approved drug an effective treatment for Covid-19? CNBC
President Trump has postponed the G7 summit: CNBC
Eurozone manufacturing continues to sharply contract in May: IHS Markit
UK manufacturing also fell significantly in May, though not as steep as April’s decline: IHS Markit
Consumer sentiment in the U.S. improved somewhat in May after a drastic drop in April: CNBC
Business activity in the Chicago region fell in May, hitting the lowest level since 1982: Chicago PMI
The U.S. trade deficit widened more than anticipated in April: MW
U.S. consumer spending plummeted by nearly 14% in April: Reuters
Tim Harford
Summary via publisher (Little, Brown)
In the acclaimed book, radio series, and podcast, Fifty Things that Made the Modern Economy, bestselling economist Tim Harford introduced readers to fifty transformative inventions. In this new addition, Harford explores another array of remarkable and sometimes unexpected “things” that offer valuable lessons about our intricate global economy.
This year has seen volatility in the U.S. stock market, with many sectors experiencing steep losses or stagnation. However, technology stands out as a significant exception; it has posted commendable gains, marking it as a notable bright spot in this year’s overall landscape based on a range of exchange-traded funds.
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The House has approved a bill imposing sanctions on China, sending it to President Trump’s desk: CNBC
Tensions continue to escalate in Minneapolis: Reuters
What announcement will President Trump make regarding China in today’s press conference? CNBC
The U.S. has charged over twenty North Korean bankers with money laundering: CNN
What will happen when unemployment benefits come to an end? NY Times
U.S. GDP loss for Q1 has been revised down to -5%: CNN
Durable goods orders in the U.S. dropped sharply for a second consecutive month in April: BBG
Pending home sales fell to an all-time low in April: BBG
The Kansas City Fed Manufacturing Index continued its downward trend in May, but at a slower rate: KCF
Last week, jobless claims in the U.S. surged again, increasing by 2.1 million: CNBC
U.S. stocks have regained their status as leading performers year-to-date across the primary regional segments of global equity markets, as indicated by a selection of exchange-traded funds. This leadership shift has pushed China’s equity market to the second position as of the market close on Wednesday, May 27.
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