SMLE News and Press, Xtrackers S&P SmallCap 600 ESG ETF From 11/14/22

Summary The October Consumer Price Index rose by 0.4%, while the core rate (removing the volatile food and energy components) increased by 0.3%. The monthly increases - and the resulting trend rates - were less than financial markets expected. The annualized pace of growth for...

Summary Surging stocks show markets believe hopes of a soft landing by the Fed to be true. We disagree and stay underweight developed market (DM) stocks. U.S. stocks jumped and bond yields plunged after October CPI rose less than the market expected. But sticky core inflation keep...

Summary Consumer spending is a short leading indicator for employment. Together, spending and employment are two important coincident indicators of imminent recession. Several of the high-frequency indicators of consumer spending and employment have deteriorated sharply since ...

Summary In our polarized world, your politics can be hazardous to your performance. Many political claims seem to make sense but do not hold water. The economy, energy policy and inflation may be the poster children of this campaign. Market reaction going into (and coming ...

Summary The average spread between the 10-year Treasury and the 30-year mortgage rate has averaged 1.7% since 1990 and now stands at 2.9%. Small and mid-cap stocks continue to look better technically than US large cap. The Russell 2000, S&P 600 and S&P 400 (midcap) index E...

Summary We are in a landscape of divergences and potential pivots. The capacity to absorb structurally higher rates is likely to be key over the next year or two. We think the volatility generated by pivots can continue to offer a favorable backdrop to global macro and other t...

Summary The narrative in financial media is that inflation has peaked. The rate of change of inflation has peaked, not inflation. Inflation remains high and consumers are paying high prices. Yesterday's market rise was highly likely a relief rally. Fo...

Summary Policymakers have often said that exchange rates should reflect fundamentals. We are still struck by the latest Bank for International Settlements figures. Their survey found that the average daily turnover in the foreign exchange market was $7.5 trillion a day. While ...

Summary The Federal Reserve, the European Central Bank and the Bank of England will all undershoot the current market discount for terminal rates, but we should get quite close to the tops that the market expects. The energy crisis in Europe adds to bond supply pressure as economi...

Summary Credit market rallies most in two years as inflation abates. The Semiconductors jumped 10.2% during Thursday's session, the Nasdaq Computer Index 9.0%, the Nasdaq100 8.4%, and the Bloomberg REIT Index 7.1%. The Goldman Sachs Short Index surged 10.9% Thursday, with a tw...