Macro matters: China’s devaluation escalates trade tension

Trade tensions have been a near-constant backdrop for investors in 2019. On Monday, markets drew a direct line between trade policy uncertainty and expectations for a weaker U.S. economy. Stocks saw their worst day since January 4 and the 10-year U.S. Treasury yield plunged to its lowest level since November 2016. Read more on how trade tensions could weigh on Fed policy, broader economic activity, inflation and how this may impact investors.
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Macro matters: Why the July Fed meeting could spark volatility

On Wednesday, the FOMC appears set to embark on its first rate cut in 10 years. Markets have cheered the Fed’s accommodative shift this year, but the outcome of Wednesday’s meeting will be more nuanced than the headline rate move. Will the Fed indicate further cuts ahead? Do policymakers view the economy as “upbeat” or “cautious”?
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Macro matters | Equity markets have been telling the wrong story

Tuesday the S&P 500 finished down 0.8% and is now over 5% lower than its recent high on April 30th, and the 10-year U.S. Treasury tested below 2.22%, the lowest since September 2017 and a full 100 bps down from its peak in early November 2018. Clearly, global growth concerns are weighing on bond markets. All year they’ve been flashing warning signs that have largely been ignored by equity investors whose optimism was buoyed by the altered Fed landscape.
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