US Manufacturing Longest Contraction in 14 Years

Market Overview
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Year To Date Performances:

1. During the past week, Bank of America's clients, consisting of institutions, hedge funds, and wealthy individuals, demonstrated a notable surge in their acquisition of US equities, reaching $5.5 billion. This represents the highest level of weekly buying activity since October 2022. Notably, eight sectors experienced net buying, with Communication Services leading. It is worth mentioning that Communication Services has witnessed eight consecutive weeks of increased purchases. Although corporate client buybacks decelerated and deviated from their typical seasonal trend, they remained above average relative to the market capitalization of the S&P 500 index.

2. The manufacturing sector in the United States has experienced its most extended period of contraction in 14 years, spanning over eight consecutive months. In June, the ISM Manufacturing Purchasing Managers' Index (PMI) dropped to its lowest level since May 2020. This decline was observed across various indicators, including new orders, production, employment, inventories, and backlogs. However, there is some positive news as prices paid contracted for the second consecutive month, which suggests a favourable inflation outlook.

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4. Headlines

   1. Bitcoin's correlation with US equities has reached its lowest level in the past two years. This indicates a decreased synchronized movement between the cryptocurrency and stock markets.

   2. Thermo Fisher has emerged as the top contender in the bidding process to acquire CorEvitas, a biopharma data provider.

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