ISM Manufacturing PMI and Global Stocks vs. Government Bonds In a potential shift from a “no” to a “hard” landing scenario, government bonds may outperform due to increased risk aversion, interest rate cuts, lower inflation expectations, and their historical performance during economic downturns. Image: BofA Global Investment Strategy
Global Manufacturing PMI The global manufacturing PMI has returned to expansion territory, indicating a positive trend in global manufacturing activity. This is a welcome sign for the global economy. Image: Goldman Sachs Global Investment Research
Central Banks – Global Monetary Policy Stimulus Leads Global Manufacturing PMI As global monetary policy stimulus tends to lead global manufacturing PMI by 8 months, could this signal the end of the economic slowdown? Image: Topdown Charts
Discretionary Investor Equity Positioning vs. S&P Global Composite PMI Discretionary investor equity positioning is not reacting to changes in the global composite PMI. Image: Deutsche Bank Asset Allocation
Global Manufacturing PMI and Global Consumer Discretionary vs. Staples The global consumer discretionary vs. staples relative performance suggests that the global manufacturing PMI could be trending towards expansion, which is good news. Image: Topdown Charts
U.S. Dollar Index (DXY) vs. Manufacturing PMI (U.S. Minus Global Ex-U.S.) Will the U.S. dollar continue to weaken? Image: BCA Research
Commodities – Global Manufacturing Output PMI vs. Bloomberg Commodity Index Will commodity prices decline in 2023 amid slowing global demand? Image: TS Lombard
Percent of Central Banks Tightening vs. Global Manufacturing PMI Global policy tightening is putting downward pressure on global growth. Image: BofA Global Research
Earnings – Global Manufacturing PMI New Orders vs. World Trailing 12-Month EPS (Leading Indicator) Global manufacturing PMI new orders tend to lead world EPS growth by 12 months. Image: BofA Global Research
U.S. 10-Year Treasury Yield and Global Manufacturing PMI (Leading Indicator) Should investors prepare for a substantial decline in the global economy? Image: TS Lombard
Markets – Financial Conditions, Global Manufacturing, PMI, S&P 500, U.S. Dollar, 10-Year UST Yield and Fed Fund Rates Should investors brace for tighter financial conditions in 2022? Image: BCA Research