ASR WSJ Newsflow

September report (Aug data): Composite Newsflow declines to 2012 levels.

• The ASR/WSJ Global Composite Newsflow Indicator (CNI) fell to 45.8 in August from 48.7 in July, its fourth consecutive monthly decline.

• The biggest mover by far was the Global Economic component which fell to 19.4 from 32.3, a 12.9-point fall, the biggest since 2000!

Key Message:The Composite Newsflow Indicator is now comfortably below 50, the threshold associated with bonds outperforming equities. But the standout reading in August was an unusually large fall in the Global Economic Newsflow component. It last hit a similar level when the world was recovering from the GFC. Both globally and in most regions, Economic Newsflow is at levels typically associated with recessions (see page 4).

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