Read the highlights of this week’s commentary from Helios:
- Data released last week showed US consumer spending in the second quarter grew at a slower pace than previously reported, mainly due to weaker services spending. Personal consumption, a key driver of the US economy, increased by an annualized rate of 0.8% in the April-to-June period, down from the earlier estimate of 1.7% and marking the weakest growth in over a year.
- The global bond selloff continued amid news that the Fed plans to keep rates ‘higher for longer.’ Yields on 30-year US Treasuries reached 4.81% on Thursday, the highest since 2010, while 10-year Treasuries hit 4.69%, the highest since 2007.
- September was the worst month for stocks in a year, with the S&P 500 down 5%, and the weakest for global bonds since February.
- The surge in oil and gas, with WTI crude up over 6% in September, has led some market commentators to expect $100 oil soon.