Low inflation environment prevails

Most firms in the S&P 500 reporting second-quarter results have surprisingly exceeded analysts' consensus expectations. Estimates had obviously been lower recently but these results do point to the fact that the stock market seems to have already discounted the current profit weakness, limiting further downside risk but waiting indefinitely for clarity on future quarters. The US Congress is in the midst of its August recess, leaving issues on trade, healthcare and energy on hold until its return. Even the Fed, which meets again on 21 August, has only a few of its members givi...