The U.S. trade deficit jumped 8.7% in June to a 10-month high of $44.5 billion, reflecting the higher cost of oil and more imports of consumer goods such as cellphones and drugs.
Economists polled by MarketWatch had expected the trade gap to rise to $43.2 billion from a revised $41 billion in May.
Although a higher deficit subtracts from gross domestic product, the official scorecard of the nation’s growth, more demand for consumer goods suggests Americans are still spending at a pace consistent with a fairly healthy, albeit slowly, expanding economy.
While most advanced economies struggle to lift inflation, none would want Venezuela‘s situation: Consumer-price inflation is forecast to hit 480% this year and top 1,640% in 2017, according to the International Monetary Fund.
A shortage of medical supplies means infants and other sick patients are dying of treatable illnesses. Soldiers guard empty grocery store shelves. Inflation is so bad, the government has had to order bolivars by the planeload.
The bulls still have much to prove before we can begin to look toward our higher targets over 2300 on the S&P 500 (SPX), but I still do not believe we have entered a major bear market. Moreover, the coming week should provide strong signals as to whether a lower low will be seen before the bull market resumes.
European banks have been caught in a perfect storm of market turmoil, lately.
Lackluster profits and negative interest rates, have prompted investors to dump shares in the sector that was touted as one of the best investment ideas just a few months ago.
Not long after billionaire George Soros forecast a so-called hard landing for the Chinese economy, Beijing fired back by calling out the high-profile investor, warning him of betting against its currency, according to media reports Tuesday.
“Soros’ challenge against the renminbi and Hong Kong dollar is unlikely to succeed, there is no doubt about that,” said a government official in an opinion piece widely cited by several media outlets.