Americans are among the world’s top meat consumers with 45 million turkeys eaten on Thanksgiving day alone, but attitudes may be changing with rising concerns about health and climate change. Meat alternative consumption has been accelerating and now represents close to 10% of the US meat market. Millennials are leading the change, with higher meat alternative consumption and vegetarianism rates compared to older generations.
Stocks ended the week of Thanksgiving in positive territory despite increased risk of China retaliating against the United States after President Trump signed a bill supporting Hong Kong's anti-Beijing protesters. The S&P 500 recorded a new all-time high on Wednesday and finished the week up 1.04%. European stocks also performed well, with the Eurostoxx 600 up 0.89% for the week. In the UK, the FTSE 100 finished the week up 0.38% despite a marginally appreciating sterling. Read More
WTI oil prices plummeted to $55.17 per barrel, breaking a four-week win streak. Nevertheless, WTI oil prices have still gained 1.83% per barrel (bbl) over the month. This week the market will watch a highly-anticipated meeting in Vienna held by the OPEC and its allies. Gold ended the week relatively flat. Read More
US Treasury yields inched higher last Friday, erasing an earlier fall after China said it would retaliate to the United States passing legislation backing anti-government protestors in Hong Kong. The US 10-Year and 2-Year notes close the week at 1.77% and 1.62% respectively. In Europe, German Bunds hit one-month lows on Thursday while Italian and Spanish debt markets sold off on renewed political uncertainty. Read More
The US dollar index ended the week relatively flat. The Japanese yen continued its mild weakening trend over the week versus the USD, as BoJ Governor Kuroda reiterated that monetary policy continues to be tilted toward further accommodation. The GBP gained some strength versus the USD, closing the week above 1.29. Sterling volatility may pick up over the next 2 weeks with the UK general elections scheduled for December 12th. Read More
In the US, the October core Personal Consumption Expenditures (PCE) index decreased by 6bps to 1.59% year-over-year (yoy), well below the median forecast of 1.70%. In the euro area, the core Harmonised Index of Consumer Prices (HICP) came in at +1.33% yoy in November beating consensus expectations of 1.20%, driven by services and non-energy industrial goods components. Longer term, we expect the euro area inflation to gradually reach 1.5% by the end of 2021/early 2022 assuming no change in the ECB’s accommodative stance for the next two years. Read More
The euro area unemployment rate fell to 7.5% in October 2019 from an upwardly revised 7.6% in September, in line with market expectations. It was the lowest rate recorded in the euro area since the Global Financial Crisis in 2008. Nevertheless, the pace of decline appears to be moderating and employment indicators have continued to deteriorate, particularly in Germany. Looking at the European Union as a whole, the unemployment rate was stable at 6.3% in October, remaining the lowest since the start of the EU monthly unemployment series in January 2000. Read More
For style performance, Large, Mid, and Small refer to the Russell 1000, Russell Midcap, and Russell 2000 indices, respectively. Value refers to companies with lower price-to-book ratios and lower expected growth values, and Growth refers to higher price-to-book ratios and higher forecasted growth values. Government, Corporate, and High Yield refer to the US Treasury index, the US Corporate Credit index, and the US High Yield index, respectively. Short, Intermediate, and Long refer to the Short, Intermediate, and Long segments of their respective curves. Quality returns refers to the credit quality of asset classes ranging from Government, highest quality, to High Yield, lowest quality.
China Manuf. PMI (Cons: 51.5, Prior: 51.7)
ISM Non-Manufacturing (Cons: 54.5, Prior: 54.7)
China Composite PMI (Cons: -, Prior: 52.0)
Nonfarm Payroll (Cons: 188k, Prior: 128k)
“Euro PMI” refers to the Markit Eurozone Composite Purchasing Managers’ Index. “Cons. Conf.” refers to US Consumer Confidence. “GE IFO Business” refers to the German Ifo Business Climate Survey. “New Home Sales” refers to US New Home Sales (MoM). “Dur. Gd. Ord.” refers to US Durable Goods Orders. “UK GDP” refers to the QoQ estimate of the United Kingdom’s Gross Domestic Product for Q3. “Euro M3” refers to the YoY change in the Eurozone’s M3 Money Stock. “US GDP” refers to the estimate of US Gross Domestic Product for Q3. “Pers. Cons.” refers to US Personal Consumption. “UMich Cons. Sent.” refers to the University of Michigan Consumer Sentiment Index. “Japan Core-Core CPI” refers to Japan’s Consumer Price Index (ex- Food, Energy YoY).
Access the full PDF to use with your clients
Get the latest Market Monitor delivered to your inbox as soon as it publishes