Week of May 18 to May 22
A week marked by inflation pressures, rising rates, and mixed growth signals
Markets are facing a more restrictive environment, with persistent inflationary pressures and rising interest rates. While some economies show resilience, others reflect a slowdown, amid ongoing geopolitical risks.
United States
- Fed Minutes point to potential rate hikes.
- 30-year yields surpass 5%.
- Earnings grow ~28%, but housing weakens.
- Labor market remains resilient.
Europe
- Eurozone inflation rises to 3.0% driven by energy.
- UK inflation moderates, but unemployment increases.
- Germany grows in line with expectations, with rising cost pressures.
Japan
- GDP exceeds expectations, but energy costs threaten growth.
- Inflation falls to 1.4%, remaining below the central bank’s target.
China
- Retail sales and industrial production slow.
- Weak domestic demand reflects softer consumption and manufacturing momentum.
Argentina
- Economic activity rebounds to 5.5%, reversing the previous contraction and signaling recovery.
Brazil
- Economic activity declines monthly but maintains 3.1% annual growth, reflecting partial resilience.
Mexico
- Moody’s downgrades rating to Baa3.
- Growth remains moderate, supported by services and easing inflation.
“Be fearful when others are greedy. Be greedy when others are fearful.” — Warren Buffett
KEY UPCOMING EVENTS
- In the United States, markets will remain closed for Memorial Day 05/25
- In the United States, employment related data will be released 05/27
Monitor:
Note: Returns as of 10 AM ET.
Source: JP Morgan
