Good morning! Let's go over what happened in the US and go into Asian hours.
First, US retail sales for August defied expectations and rose massively. How big? Well, MoM is 2% ex auto ex gas (downward revision for July).
Okay, so u're like, how do I compare this to say China?
First, US retail sales for August defied expectations and rose massively. How big? Well, MoM is 2% ex auto ex gas (downward revision for July).
Okay, so u're like, how do I compare this to say China?
To do that, you have to use %YoY or August 2021 vs August 2020 as that is how China data is presented.
USA +15% πΊπΈ
China +2.5% π¨π³
Drivers of US consumption? Goods as services like restos + bars down. Inversely, u saw China exports rocked it, thanks to demand for the US.
So?
USA +15% πΊπΈ
China +2.5% π¨π³
Drivers of US consumption? Goods as services like restos + bars down. Inversely, u saw China exports rocked it, thanks to demand for the US.
So?
With US retail sales in August stronger than expected, u got reaction in the markets (don't forget that before this we got rather saggy markets b/c of weak sentiment from Evergrande fear - meaning whether it translates to weaker Chinese growth & global GDP) &:
USD & UST yield up
USD & UST yield up
Another key data that I like to talk about is foreign ownership of UST treasury. Guess what? They bought more in July!
Even w/ real yield very negative, they want more, especially Japanese buyers. But even the Vietnamese, they are raising their reserves a lot!
Even w/ real yield very negative, they want more, especially Japanese buyers. But even the Vietnamese, they are raising their reserves a lot!
One thing I like to point out is that both Indonesia and Malaysia aren't on this list because they own less than 35bn UST. So it means they deploy their reserves elsewhere.
Today is light Asia day. Singapore August exports. Old news really as we know demand in the US + EU strong
Today is light Asia day. Singapore August exports. Old news really as we know demand in the US + EU strong
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