CSOP USD Money Market Fund Wrap-20240729

Last week, real GDP for Q2 2024 increased by 2.8%, surpassing the predicted 2.0%, and the core PCE deflator was 2.9%, higher than the expected 2.7%. This could enable the Fed to gradually enter into monetary easing.

Weekly jobless claims fell to 235k, below the forecasted 238k, possibly due to volatility in the summer as workers are laid of when factories retool, and once that is done, the workers return to work and unadjusted claims would fall. Bloomberg economist thinks the labor market cooling will resume uptrend in initial and continuing claims as summer ends.

Coupled with the fact that the Bureau of Labor Statistics’ fourth quarter Business Employment Dynamics report confirmed that nonfarm payrolls have overstated labor market robustness for almost a year, labor market has most probably passed a turning point, and Bloomberg Economists think the Fed is likely behind on cutting rates.

Regarding US elections, Biden succumbed to pressure from the Democrats and exited the November election.

Source: CSOP, Department of Labor, Bloomberg, as of 20240726. ^ Gross yield is based on annualized yield of underlying holdings. 7-day net yield is calculated based on calendar days and NAVs in 5-decimal.

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