All articles tagged with #economic weakness
Metro's forecast indicates that economic weakness in Multnomah County will limit growth in homeless services tax collections, potentially impacting funding for local programs, with collections expected to be only slightly higher than last year after accounting for a one-time payment boost, and ongoing economic challenges may force service cuts.
Gold prices surged $36 to $2079, potentially setting up for the highest daily close ever, as the market anticipates a potential takeoff when the US dollar weakens. This impressive run for gold comes despite USD strength and rising Treasury yields, with the intraday high of $2135 in early December being the closest to the current levels.
Most Asian stocks recovered slightly on Thursday, driven by positive earnings reports, although concerns over China's weak inflation data limited gains. Chinese stocks lagged behind as the country fell back into disinflation territory, indicating further economic weakness. Japan and Australia saw strong gains due to robust earnings, while South Korea and India also showed positive signs. However, hawkish comments from US Federal Reserve officials raised doubts about future interest rate hikes, and the weak economic outlook for China poses additional challenges for the region.
According to a Duke University professor, the collapse of Silicon Valley Bank earlier this year is not an isolated incident, and many other banks may fail. The professor warns that as long rates increase, it will have negative implications for the economy, particularly in the commercial real estate and housing markets. He believes the Federal Reserve should have stopped raising rates earlier this year to avoid a self-inflicted recession. The professor also notes that the current GDP growth is primarily due to consumers depleting their pandemic savings, and the economy cannot rely on consumer spending to bail it out in 2024.
Most Asian stocks declined due to weaker-than-expected business activity readings from China, with Chinese stocks sinking as PMI data showed economic weakness. The Nikkei, however, reversed early losses after the Bank of Japan maintained negative interest rates and made minimal changes to its yield curve control policy, signaling easy monetary conditions for the near future. Concerns over China offset a strong lead-in from Wall Street, and investors are awaiting the conclusion of a Federal Reserve meeting, which is expected to reiterate a higher-for-longer rate stance that could negatively impact Asian markets.
U.S. stock futures were trading slightly higher after a week of declines in benchmark averages, rising bond yields, and continued economic weakness in China. Investors will be monitoring housing sales, PMIs, consumer sentiment, and earnings reports from companies such as Zoom, Lowe's, and Nvidia. The Dow and S&P 500 lost 2.1% for the week, while the Nasdaq shed 2.2%. Bond rates were nearing 15-year highs.