Highlights of key economic statistics from last week compiled by Putnam Investments.
- Existing home sales dropped 3.4% in May compared with April, the National Association of Realtors found.
- New homes sales rose 10.7% in May compared with April, the Census Bureau reported.
- Initial jobless claims fell by 2,000 to 229,000 in the week ended June 18, 2022, the Department of Labor reported.
- As of June 17, 2022, the estimated earnings growth rate for the S&P 500 is 4.3% for the second quarter, according to FactSet.
- The University of Michigan’s index of consumer sentiment dropped to 50.0 in June from 58.4 in May.
- The European Commission’s Flash Consumer Confidence Indicator for the euro area declined in June.
- The S&P Global Flash Eurozone PMI Composite Output Index dropped to 51.9 in June from 54.8 in May.
- The United Kingdom’s Office for National Statistics noted the CPI increased 7.9% in the 12 months to May.
- Eurostat reported euro area construction output fell 1.1% in April compared with March.
- The yield on the 10-year Treasury note declined.
- Rising energy prices, worsened by the Russia-Ukraine War, increase the risk of stagflation and recession, even as central banks seek monetary policy normalization.
- Declining liquidity and deteriorating financial conditions, combined with high valuations, are contributing to a substantial uptick in risk asset volatility.
- Global leverage is at worrisome levels and will eventually need to be paid for, at a time when most developed markets are facing a fiscal drag from the end of post-pandemic stimulus.
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