After last week's revised BLS data showed desperate Americans saving the least since the recession...
It is perhaps no surprise that personal income growth ended in June (0.0% MoM) missing expectations and falling to its lowest level since November. Spending growth also slumped (has not been weaker since August).
As US equity markets push higher this morning, because that's what they do, WTI Crude prices are sliding back below $50 as Goldman poured cold water on the idea that sanctions of Venezuela will impact prices.
Goldman says U.S. oil sanctions on Venezuela would have little impact on prices.
Yesterday it was Bank of America, today's it's SocGen's turn.
As we've repeatedly stated in the past, not a day seems to pass without some broker, investor, sellside analyst or pundit (this website certainly included) opining on i) how low the Vix has fallen, ii) how much lower it will fall, and iii) how the inevitable surge will lead to unpleasant consequences.
Welcome to August: you may be surprised to learn that S&P 500 futures are once again levitating, higher by 0.3%, and tracking European and Asian markets. Asian equities traded higher across the board after China's Caixin Manufacturing PMI beat expectations and printed its highest since March, refuting the decline in the official PMI data reported a day earlier, while firmer commodity prices boost both sentiment and commodity stocks across Asia and Europe.
The AUDUSD has faded overnight gains and was trading near session lows after the RBA kepts its interest rate at 1.5% as expected and previewed last night, however in an echo of last week's comments from Lowe, the central bank flagged that a stronger AUD was expected to contribute to subdued price pressures and was weighing on the outlook for output and employment and would result in a slower pick-up in economic activity and inflation than currently forecast.