- Equities rallied this week amid generally strong earnings reports and a softer-than-expected U.S. inflation print that suggested we might be nearing the end of the road for Fed tightening.
- The gains extended beyond Wall Street, though—the TSX closed the week 2.2% higher, and even the CSI 300 was up almost 2% on the week.
- Annual growth in U.S. CPI slowed to 3.0% in June, a full percentage point below the previous month’s pace.
Bottom Line: Central banks are likely to view the latest CPI numbers very positively, and the economy remains much stronger than many people realize.
Bottom Line: It’s looking increasingly likely that China might not bounce back as much as expected, which is why we’ve decreased our allocation to EM compared to the beginning of the year.
Bottom Line: Uncertainty in Energy remains higher than we’d like, and for now, we think it’s best not to overweight that area.
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