WEEKLY CAPITAL MARKET HIGHLIGHTS:
- Among equities, most US and European equity markets were lower on the week despite Friday’s rally. The NASDAQ Index was higher on the week, boosted by Apple’s earnings report on Friday. The Asian markets also were lower.
- Treasury yields were largely unchanged. Treasury yields remained within a basis point of last Friday’s close after the Fed’s decision to leave short-term rates unchanged on Wednesday and a benign jobs report on Friday.
- The US Dollar Index was again higher on the week, continuing its rally from mid-April. Bilateral trade talks in China are drawing significant attention, as a negative outcome from the talks could mean additional tariffs from both sides.
- Crude Oil was largely unchanged during the week after a significant run-up during April. The market is waiting for a decision on the Iran nuclear deal expected next week. Should the US decide to negate the current deal, it could reduce Iran’s output dramatically and shrink global supply.
- Among other economic data released this week: Construction expenditures were down 1.7% in March, but 3.6% higher than a year ago. The US trade deficit fell to $49 billion in March, a six month low. Exports jumped 2% in the month, in part due to increased shipments of agricultural goods ahead of pending tariffs by China.
Click here to download the complete weekly report: Endowment Wealth Management Weekly Review May 4, 2018