Quick Bites | Observations from Random Charts

Quick Bite – Observations from Random Charts

As we navigate mid-2025, global markets continue to evolve with significant shifts in sectors, currencies, and economic indicators. This Quick Bite highlights a few noteworthy trends, offering insights into opportunities and risks. Here are some random observations based on recent data.

 

US S&P 500 looking up.

 

FX strategists expect the trade-weighted USD to weaken further.

Source: Goldman Sachs

 

The S&P 500 generates 28% of its sales outside the US.

This FactSet data shows the S&P 500’s international exposure (28%), with the Magnificent 7 at 49%. This highlights the US market’s vulnerability to currency fluctuations and trade conflicts.

Source: S&P, FactSet

 

US Dollar (inverted) & Crude Oil: inverse correlation trends between the US dollar and crude oil prices.

Copper & China: Dr Copper rising signals industrial and manufacturing growth. Copper prices and China’s economic activity are closely linked. With China’s recovery gaining traction, this trend could further boost commodity prices and Australian resource stocks.

Source: Trend Labs

 

Core Goods vs. Core Services CPI: Diverging trends.

Source: Wells Fargo

 

Wells Fargo’s chart shows core services CPI at 3.6% versus core goods at 0.7% in June 2025. This divergence signals persistent inflation pressures in services. The mixed recovery in retail sales, which rose 1.2% in June 2025, suggests cautious consumer spending.

 

US Electricity Consumption: AI-driven demand surge.

 

Magnificent Seven Earnings Growth: Leading S&P 500.

FactSet data forecasts the Magnificent 7 to drive S&P 500 earnings growth in Q2 2025. This leadership reinforces tech’s global dominance.

 

Source: Yahoo Finance

 

The information above underscores a tech-driven global economy, with the US leading innovation and China recovering. Australia benefits from commodity exports but faces currency and inflation risks. As always, we recommend reviewing portfolios for diversification and monitoring geopolitical developments, especially US-China trade dynamics. Contact us for personalized strategies.