WEEKLY CAPITAL MARKET HIGHLIGHTS:
- In the US, small cap equities outperformed large cap. The S&P 500 Index ended the week in negative territory for the second straight week. Outside the US, developed markets equities also lost steam, concluding the week in red. Emerging markets equities lead the way, up by over 110 basis points.
- The yield on the 10-Year Treasury Note slipped 2.35% after strong housing starts data was released.
- The dollar depreciated against a basket of major currencies as a result of uncertainties related to tax reform as well as news that members of President Trump’s campaign have been subpoenaed.
- Commodities slipped, dragged down by oil prices that more than offset the rise in gold prices.
- Among other economic data released this week: US industrial production showed large gains in October, rising 0.9% vs 0.5% expected. Core Consumer Price Index (CPI) remained at 1.8%, below the Federal Reserve’s target of 2%. Retail sales surprised to the upside, increasing by 0.2% last month, thanks to an increase in purchases of motor vehicles and a range of other goods that offset a decline in demand for building materials. House Republicans passed the tax reform bill, slashing the corporate tax rate from 35% to 20% as well as cutting taxes for individuals while reducing the number of tax brackets. The bill may face some headwinds in the Senate, where Republican leaders are working with a slimmer majority. According to the Joint Committee on Taxation’s evaluation of the bill, over time, the tax cuts phase out for lower-income tax payers making under $75,000 per year.
Click here to download the complete weekly report: Endowment Wealth Management Weekly Review November 17, 2017