WS #14643
Eurozone business activity data exceeded forecasts, reinforcing the narrative of a resilient global economy that is resistant to disinflation. This is compounded by McDonald's CEO noting sticky inflation globally and Bloomberg reporting that data center debt is making investors choosier. These factors sustain the hawkish bond market backdrop, with yields holding near 19-year highs. This environment is bearish for rate-sensitive growth stocks and consumer discretionary names like Shopify and Expedia, which are currently sliding as capital costs remain elevated.
Macro Resilience & Rate Sensitivity
Eurozone business activity data exceeded forecasts, reinforcing the narrative of a resilient global economy that is resistant to disinflation. This is compounded by McDonald's CEO noting sticky inflation globally and Bloomberg reporting that data center debt is making investors choosier. These factors sustain the hawkish bond market backdrop, with yields holding near 19-year highs. This environment is bearish for rate-sensitive growth stocks and consumer discretionary names like Shopify and Expedia, which are currently sliding as capital costs remain elevated.