Change in Global Financial Conditions Following 8 Largest Geopolitical Risk Shocks in the Middle East Even though past Middle East conflicts haven’t consistently tightened financial conditions, the global FCI is up 31bp. Sustained at this level, the squeeze could trim global GDP growth by roughly 0.3pp over the next year. Image: Goldman Sachs Global Investment…
GS Financial Conditions Index With rates lower and equities climbing, looser US financial conditions are giving both consumer spending and business investment a stronger tailwind. Confidence often strengthens in step. Image: Goldman Sachs Global Investment Research
U.S. Financial Conditions Index and SLOOS With financial conditions easing and banks pulling back on loan tightening, the U.S. economy looks poised for stronger investment, hiring, and growth. But those tailwinds could reignite inflation if demand runs ahead of supply. Image: Goldman Sachs Global Investment Research
Global Financial Conditions Index Global financial conditions have eased to a 12-month low, supported by expectations of monetary policy easing, improved investor sentiment, tightening credit spreads, and a more stable economic outlook. Image: Goldman Sachs Global Investment Research
Financial Conditions Indices Looser U.S. financial conditions bode well for economic growth by fueling consumer spending and business investment—two vital engines driving the economy forward. Image: Goldman Sachs Global Investment Research
U.S. True Financial Conditions Index The U.S. True Financial Conditions Index stands at 6, indicating a slightly accommodative financial environment. Image: Gavekal, Macrobond
S&P 500 and Chicago Fed National Financial Conditions Index Should investors stay optimistic? The rise in the Chicago Fed Financial Conditions Index is seen as a bullish signal for the S&P 500, suggesting potential for further upside. Image: BofA Global Research
Financial Conditions Financial conditions in G3 economies have been experiencing a trend of loosening, posing challenges for central banks in their efforts to manage inflation and making it more difficult to keep it under control. Image: BofA Global Research
10-Year U.S. Treasury Real Rate vs. U.S. Financial Conditions Index The decoupling of U.S. financial conditions from U.S. real rates persists. Image: Morgan Stanley Wealth Management
Financial Conditions and U.S. Recessions The Fed may face challenges due to looser financial conditions, as it requires tighter conditions in order to effectively curb inflation towards its 2% target. Will the Fed adopt a more hawkish stance next month? Image: Real Investment Advice
S&P 500 Index vs. Financial Conditions Index Should investors forget Goldilocks, as it’s all about financial conditions? Image: Morgan Stanley Wealth Management