Global Stock Market Performance

Japan stocks confirmed a bear market with Nikkei 225 and Topix dropping over 12% as global markets face sell-off, following poor economic data and fears of recession.

Chinese Economic Data Post-May Holiday

New economic data released by the Chinese government post-May holiday week reveals insights into the world's second largest economy.

Economic Analysis and Federal Reserve Policy

Economic data shows a strong labor market and low jobless claims, suggesting no imminent interest rate cuts. Atlanta Fed President Bostic supports this view. Leading economic indicators fell in March, but manufacturing sector is expanding. Mortgage rates rose to 7.5%, leading to increased applications despite low inventory.

Foreign Holdings of U.S. Treasuries

Foreign holdings of U.S. Treasuries reached a record high in February, with Japan and Belgium increasing their holdings significantly. China's holdings decreased, while the overall inflow of long- and short-term securities saw a significant increase.

Market Volatility and Economic Data Impact

Markets experienced volatility due to strong economic data, with fears rising about the Federal Reserve's ability to cut interest rates. Investors are concerned about inflation and a potential delay in rate cuts. Contrarians believe a market retreat is overdue, as sentiment becomes stretched and crowded.

Oil Prices Surge Amid Middle East Conflict and Ukrainian Drone Strike

Oil prices rise to highest level since October amid escalating conflict in the Middle East and a Ukrainian drone strike on a major Russian oil refinery. Geopolitical tensions and economic data fuel the increase.

Federal Reserve interest rate cuts

The article discusses the Federal Reserve's expected interest rate cuts, comparing it to the elusive nature of rainbows. Market projections for rate cuts have changed due to economic data showing faster-than-expected growth, with Fed Chairman Powell emphasizing the need for patience and no urgency for rate cuts.

Financial Prudence and Fed Policy

Fed Governor Christopher Waller advocates for a continuation of the Fed's wait-and-see policy, emphasizing the importance of being patient and cautious in making decisions about interest rate cuts.