MyStratWeekly – May 28th 2024

Topic of the week: US credit cards: higher card delinquencies but no stress for now

• The rise in delinquencies and a contraction in credit card lending in the first quarter is notable;
• Credit card delinquencies are highest among households whose credit card balances are close to the limit;
• Delinquencies outside credit cards remain muted;
• Credit standards on credit card loans have been tightened by banks;
• Credit card losses remain very low at large banks, as smaller institutions bear the brunt of the deterioration.

Market review: Nvidia, a distraction from the bigger picture?

• Nvidia leads tech higher but equities hit by higher rates;
• Fed minutes show some FOMC participants policy Is not restrictive enough;
• Stronger US PMI spark bond selloff, with Bund yields above 2.60%;
• Sovereign and credit spreads remain stable.

Axel Botte's podcast

• Topic of the week: Market news and economic conditions;
• Theme: US equities at the crossroads?

Chart of the week

The price of copper is at an all-time high. A ton of metal is trading at more than $10,400.

The energy transition metal par excellence is facing both high demand and recurring production problems, especially as the productivity of the deposits has been decreasing for several years.