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According to Oxford Economics, house prices are overvalued by about 10% after a decade-long boom, one of the strongest since 1900. The Netherlands, Canada, Sweden, Germany and France are deemed to be the riskiest property markets looking at their long-term trends and price-to-rent ratios. Values increased by around 43% in these advanced economies. Source: Oxford Economics, Bloomberg

The demand for diesel and gasoline for both cars and trucks is expected to peak in 2027, or four years earlier than initially expected. The reason for this is that we have more and more fuel-efficient automobiles as well as an increasing EV adoption, curbing gasoline consumption. The demand decline will be steepest in the US and Europe, and slower in Asia. Source: BNEF Road Fuel Outlook, Bloomberg

According to economists, there is a new bearish scenario to pay attention to: that the economy has already reached its speed limit, eventually starting to slow from there. If you add the spread of the delta variant to the tighter monetary policies for fear of inflation, one might worry that financial markets might have got ahead of themselves. This shift in narrative was observed with the recent dip of 2% yesterday on the S&P 500. Some believe that the correction is only temporary, blaming cyclical stocks and temporary fear of infections, while others remain less optimistic. Source: Bloomberg, Yahoo Finance

The S&P 500 energy sector is down by 3.6% meaning since Monday, that it has fallen 10%. Other cyclical sectors have also performed poorly, as the drop in yields weighs on financials and growth concerns weigh on materials and industrials. Markets seem to be taking their queue from Covid fears, with the Variant causing surges in the UK despite vaccines which implies other countries could soon face similar problems. Source: Macro Markets Daily

US producer prices inflation rose 7.3% in June vs a 6.7% expected. Core PPI also beat estimates by 0.5%, rising to 5.6%. Source: Fred St Louis Fed