Look for a breakout over a pivotal resistance point That China is all but destined to overtake the United States as the global economic leader has been received wisdom for market-watchers for quite a long time now. This narrative envisions the resurgent East Asian giant in the same challenger role that the North American powerhouse … Continued
The U.S. dollar backtracked in July as the Federal Reserve tempered expectations for when it would begin to reduce stimulus. The markets had seemingly over-extrapolated after the Fed brought forward its projected rate hike timeline at the June policy meeting. That change introduced 50 basis points in tightening in 2023 that were previously absent from … Continued
This writer has argued in the past two issues of Luckbox that structural factors beyond “base effects” of the COVID-19 slump in 2020 were likely to make this year’s inflation pick-up stickier than the “transitory” rise envisioned by the Federal Reserve. The Fed seemed to revise its stance accordingly at June’s momentous Federal Open Market … Continued
The recovery from the depths of the COVID-19-induced recession has gathered meaningful momentum. In fact, global manufacturing and services are growing at their fastest pace in more than six years, according to the Purchasing Managers’ Index (PMI) survey data from JPMorgan and Markit Economics. The upswell has come thanks to an unprecedented flood of fiscal … Continued
The Covid-19 pandemic plunged the world into deep recession as nations retreated into lockdown to contain the viral spread. But monetary and fiscal officials responded to the crisis swiftly and powerfully, based on the collective wisdom they gained during the 2008 global financial crisis and its aftermath. This time, world leaders took bold action to … Continued
