Reversal of fortunes

US equity markets have underperformed relative to global peers in recent weeks, as investor sentiment has deteriorated in response to weaker-than-expected growth data and growing concerns about the Trump administration’s economic policies. The administration’s renewed push for tariffs, alongside fiscal expansion and tighter immigration policies, has fuelled stagflation fears, compounding the uncertainty surrounding the Fed’s next steps. In our charts this week we focus on:

·         US equity markets and data surprises

·         US capital flows versus the dollar

·         National savings rates

·         Ageing populations and deindustrialisation

·         Wage inflation in the US and Europe

·         China’s property market