Episode - 19 May 2023

Financial markets were a little unsettled earlier this week but heightened optimism about the willingness of US politicians to raise the US debt ceiling has calmed some fears. Incoming economic data, however, have taken a turn for the worse and there is arguably now mounting evidence to suggest that tighter monetary policy is beginning to exact a heavier toll. Against this backdrop, our charts this week home in on:

·         The US yield curve

·         Private sector deleveraging

·         China’s disappointing reopening phase

·         Japan’s economy in Q1

·         The UK labour market

·         Inflation, profits and sales