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Uncle Sam Gets Downgraded

07 Aug 20236 минут
Uncle Sam Gets Downgraded

New data out last week showed the eurozone economy returned to growth in the second quarter. Core inflation in the bloc, meanwhile, defied expectations for a drop and remained elevated last month. Elsewhere, new data out last week showed activity in China’s manufacturing sector contracted in July, offering fresh evidence that the world’s second-biggest economy is losing momentum. But let’s have a moment of silence for the world’s biggest economy, the US, which just got stripped of its top-tier sovereign debt rating by Fitch. Across the pond, the Bank of England raised interest rates by a quarter of a percentage point last Thursday, taking rates to their highest level since 2008. In the equity world, long-short hedge funds are derisking their books amid this year’s convoluted markets. Finally, Treasuries are exhibiting their worst performance as a stock hedge since the 1990s. Find out more in this week’s review.

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