Weekly Economic Highlights
Week Ending August 2, 2024
Welcome back to MacroQuant Insights! This week, we’re diving into the most impactful economic events across the globe. Let’s explore the key developments that shaped the economic landscape.
🔍 Takeaway
This week’s economic data paints a mixed picture across major economies:
United States: The US shows signs of a cooling labor market with rising unemployment and a sharp contraction in manufacturing activity, despite the Fed's steady stance on interest rates.
International: Central banks in Japan and the UK are making cautious adjustments to monetary policy amid mixed economic signals, while the Euro Area experiences modest growth with persistent inflationary pressures.
Emerging Markets: China faces a contraction in manufacturing, while Taiwan and South Korea show mixed economic performance with growth in GDP but rising inflationary pressures.
💼 Market Indicators
SPY Performance
Performance and Valuations by Region
Source: MSCI
Momentum performance by Style
Source: MSCI
🇺🇸 United States
Federal Reserve: Held the federal funds rate at 5.25%-5.50%, noting progress toward the 2% inflation goal but remaining cautious.
ISM Manufacturing PMI: Fell to 46.6 in July 2024, marking the sharpest contraction since November 2023.
Employment Data: The US added 114K jobs in July 2024, below expectations, with unemployment rising to 4.3%.
🌐 International
🇨🇦 Canada:
Manufacturing PMI: Fell to 47.8 in July 2024, indicating the sharpest contraction since December.
GDP: Expanded by 0.2% in May 2024, driven by growth in agriculture, forestry & fishing, and utilities.
🇯🇵 Japan:
Unemployment Rate: At 2.5% in June 2024, the lowest since January.
Bank of Japan: Raised its key short-term interest rate to around 0.25%, reducing monthly bond-buying.
🇬🇧 United Kingdom:
Bank of England: Lowered its Bank Rate by 25bps to 5%, moving cautiously on further loosening.
🇪🇺 Euro Area:
GDP: Grew by 0.6% year-on-year in Q2 2024.
Inflation: Edged up to 2.6% in July 2024 from 2.5% in June, driven by rising energy costs.
🌏 Emerging Markets
🇨🇳 China:
Manufacturing PMI: Fell to 49.8 in July 2024, indicating the first contraction since October.
🇰🇷 South Korea:
Manufacturing PMI: Fell slightly to 51.4 in July 2024, showing softening growth.
Inflation: Rose to 2.6% year-on-year in July 2024.
🇹🇼 Taiwan:
GDP: Expanded by 5.09% year-on-year in Q2 2024, beating forecasts but slowing from the previous quarter.
Stay tuned for next week's updates! Feel free to share your thoughts or questions.