Highlights of key economic statistics from last week compiled by Putnam Investments.
- Durable goods orders increased 1.0% in October, the Census Bureau stated in an advance report.
- New home sales jumped 7.5% in October compared with September, according to the Census Bureau and the Department of Housing and Urban Development.
- Initial jobless claims rose by 17,000 to 240,000 in the week ended November 19, 2022, the Department of Labor reported.
- As of November 17, 2022, of the 469 S&P 500 Index companies reporting third-quarter earnings, 318 beat analysts’ estimates, according to S&P Dow Jones Indices.
- The European Commission’s Flash Economic Sentiment Indicator for the euro area improved in November.
- The S&P Global Flash Eurozone PMI Composite Output Index increased to 47.8 in November from 47.3 in October.
- Germany’s Federal Statistical Office noted producer prices fell 4.2% in October compared with September.
- The yield on the 10-year Treasury note declined.
- High 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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