Charting the global economy: Expectations of global growth improves, but rebound remains fragile
Inflation eased in both the US and UK, prompting bets that central banks on both sides of the Atlantic will start cutting interest rates by the middle of next year.
Meantime, expectations for growth across Europe are improving, but the rebound remains fragile in the European Union’s east. The economic recoveries underway in China and Japan are also shaky given slowing consumption, among other factors.
Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy:
US
US inflation broadly slowed in October, which markets cheered as a strong indication that the Federal Reserve is done hiking interest rates.
Traders also pulled forward bets of when the Fed will first cut rates into the first half of next year.
There’s talk of a great divide in the US housing market, as new buyers get crushed by 8% mortgage rates while earlier ones cling gratefully to loans of less than 3%. Missing from this story is a third, even more fortunate group: the rapidly growing number of Americans who own their homes outright.
