European markets were generally unfazed by seemingly ho-hum economic data released today.
World inflation, measured using the consumer price indices of 33 countries and the producer price indices of 22 countries, remains relative stable and low through the end of May. The average year-over-year change for consumer prices around the world was 1.85%. This is just slightly above March’s three year low of 1.8%.
New data released today by the Investment Company Institute show another month in which investors piled more money into equity mutual funds and ETFs relative to money market funds.
Last week we took a look at how much price to book multiples have expanded since 2008. Today, we are undergoing the same exercise but this time we are looking at price to cash flow multiples.
This year’s steady decline in French and German 10-year bond yields accelerated this week, with French OATs making new all-time lows: France (1.60%) Germany (1.26%) Whether prompted by a lack of confidence in the ECB’s announcement of various supportive measures earlier this month, unimpressed by less than encouraging data out of the region, or spooked
The recent sales tax increase in Japan is wreaking havoc with price statistics, making year-over-year comparisons basically useless. To address this problem we have begun to make a very simple adjustment to the published price stats which is to subtract the impact of the tax increase starting in April 2014.