5.10.24: US Stocks at 50-year High Relative to China

For Public Readers: Weekly Key U.S. and China brief market notes by Larry Cheung's Analyst Staff Team for our Public Email List

May 10, 2024

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In our emails, we will provide the following coverage points:

Brief Overview of U.S. & China Markets
Macro Chart in Focus
U.S. & China Upcoming Economic Calendar
Chart That Caught Our Eye

U.S and China Markets Brief Snapshot 🇺🇸 🇨🇳

(Powered by our Channel Financial Data Provider YCharts)

S&P 500 Index: 5216.71

KWEB (Chinese Internet) ETF: $29.98

Analyst Team Note:
Chinese stocks hit a 50-year low vs US stocks in January and Chinese bonds hit all-time highs vs US Treasuries in April.
Both trades are now reversing from extremes as China deflation risks fall off.

Macro Chart In Focus

Analyst Team Note:
“The Biggest Picture: corporate bonds en fuego…since Mar’20 biggest outperformance vs govt bonds in 100 years (US government spending +40% over period to $6.2tn), IG bond inflows on course for record $440bn in '24, IG spreads (88bps) at levels seen during boom/extreme QE\; credit like stocks loving macro ambiguity & Fed asymmetry…but once govvies start outperforming credit, risk assets get toppy.” - BofA’s Michael Hartnett

Upcoming Economic Calendar

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U.S Economic Calendar (Upcoming Data Points)

China Economic Calendar (Upcoming Data Points)

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Analyst Team Note:
In early May, US consumer sentiment fell to its lowest level in six months, influenced by rising short-term inflation expectations and increasing worries about the job market.
Consumers anticipate that prices will increase by an annual rate of 3.5% over the next year, the highest forecast in six months and a rise from the 3.2% predicted in April.
For the next five to ten years, they expect inflation to be around 3.1%, which is a slight increase from the previous month.