Last week, data released showcased a 0.9% m/m rise in US industrial production, exceeding the 0.3% estimate, thanks to a general increase in factory output.
However, retail sales only slightly increased by 0.1% m/m, falling short of the 0.3% estimate, with previous months also revised downwards.
Later in the week, economic data strengthened as initial claims dropped by 5k to 238k, though higher than the expected: 235k, easing worries about last week's significant increase and reinforcing the idea that recent volatility may be partly due to seasonal adjustments related to holidays and school vacations.
May housing starts surprisingly reduced 5.5%, below the estimated 0.7% increase, as expectations of short-term rate cuts retreated. Elevated financing costs and continuous demand pressures are likely to act as a headwinds to housing activity.
Several Federal Reserve officials stressed the necessity for more proof of slowing inflation before reducing rates and thus we expect CSOPUMM to continue to deliver stable yield in the near term. As of 20240621, the fund has net yield at 5.12%. ^
Source: CSOP, Department of Labor, Bloomberg, as of 20240621. ^ 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. For illustration purposes only, not to be construed as recommendation to buy/sell securities in the above-mentioned sectors.
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