Week in review

• China Markit/Caixin services PMI rose to 54.3
• Eurozone Feb unemployment rate flat at 8.3%
• U.S. Feb consumer credit higher than expected at $27.6bn

Week ahead

• Korea unemployment rate
• China GDP y/y, trade balance
• U.S. housing starts, Michigan Sentiment

Thought of the week

The strong vaccination progress in the U.S. has allowed a gradual reopening of their services sector, such as air travel and sports events, while their European counterparts entered another round of lockdowns. The positive effects of the vaccination progress and large fiscal stimulus in the U.S. is starting to shine through in the recent slew of economic data, including a 37-year record-high ISM manufacturing index of 64.7, the February JOLTS survey showing a marked uptick in job openings, and service sector PMIs showing solid gains for March. While these are encouraging signs of a return to normalcy, the possibility for higher U.S. Treasury yields remains if the economy progresses faster than the Federal Open Market Committee expects, which would present headwinds to long-duration fixed income and growth equities. We may continue to see further rotations into value and small-cap stocks, which continue to be attractive for investors in a post-pandemic economy.

Travel and navigation app usage

% of 2019 average

Source: App Annie, J.P. Morgan Asset Management. Data is sourced from App Annie with over 600 travel and navigation apps globally, including Google Maps, Uber, Airbnb and Booking.com.  
Data reflect most recently available as of 09/04/21.

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