From Bryce Coward, CFA: Proxy metrics for financial conditions from the US dollar, to interest rates to corporate bond spreads have been loosening since June and suggest continued moderate economic growth in the second half of 2017 and a firm equity market.
In this post we’ll briefly highlight how these measures of financial conditions point to a firmer manufacturing PMI, which is our preferred leading economic indicator and is itself a coincident indicator to rates of change in stock prices.