Category

Financial Markets & Economy

EWM Weekly Capital Market Highlights for Week Ending 8/16/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • Emerging markets hit a rough patch. Argentina showed it was not immune to political risks, as its stock market plummeted 48% after poll results, sending a shockwave across financial markets. The Argentinian peso also felt the heat after it closed more than 7% weaker against the dollar. China’s economy showed signs of struggle after growth in industrial output and retail sales data slowed.
  • European stock markets extended their losing streak. The decline was led by Britain’s FTSE 100, which dropped to a six-month low. Further gloom  prevailed in the markets as Germany’s economy shrank in the second quarter, driven by a decline in exports, signaling recession.
  • Within commodities, gold rallied, while oil continued to tumble. This activity echoed prevailing market sentiment.
  • Shares of General Electric tanked. The stock plummeted 11% after a private financial investigator accused the firm of indulging in accounting fraud at a magnitude higher than that of the Enron scandal.
  • Inflation accelerated in the US. The Consumer Price Index rose a seasonally adjusted 0.30% last month from June, which was driven by the Energy, Health Care, and Real Estate sectors and the transportation industry.

Click here to download the complete weekly report: EWMWeeklyReview 8.19.19

Disclosure: Past performance is not necessarily indicative of future results.

EWM Weekly Capital Market Highlights for Week Ending 8/9/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • Domestic equities were down for the week, with small cap stocks decreasing the most. International equities ended the week in negative territory, falling more than their domestic counterparts, with emerging markets stocks faring the worst.
  • Treasury yields across the curve declined through end-of-day Thursday, with longer-term yields falling more than shorter-term yields.
  • The US dollar weakened against a basket of major trade partners’ currencies during the week, reflecting increased fears over currency wars.
  • Commodities contracted for the week, as declining energy prices outweighed the strong week for gold.
  • In other economic news, The Producer Price Index for final demand increased by 0.20% last month, bringing the final demand index up 1.70% for the 12 months ended in July. The muted producer prices may be a result of the prolonged global trade war, which some analysts believe is causing a slowdown in manufacturing.

Click here to download the complete weekly report: EWMWeeklyReview 8.12.19

Disclosure: Past performance is not necessarily indicative of future results.

EWM Weekly Capital Market Highlights for Week Ending 8/2/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • Global equity markets were led by Japan and Turkey, which posted returns between 19 and 24 basis points through Thursday. India and Argentina, down more than 3.10% and 4.30%, respectively, were the worst performers.
  • The Treasury yield curve shifted downward through Thursday. Yields across the curve fell precipitously in response to the Fed’s rate cut.
  • Commodities were broadly down on the week. Oil, agriculture, and precious and industrial metals were down on the week.
  • The US dollar strengthened against a basket of major trade partners’ currencies. The dollar index remains at highs not seen since 2017.
  • In other economic news: The US trade deficit grew in January as exports fell due to ongoing trade tensions. Construction spending fell 1.30% in June in a greater drop than economists had forecast. The Conference Board’s Consumer Confidence Survey approached post-crisis heights in July, as unemployment remains low.

Click here to download the complete weekly report: EWMWeeklyReview 8.5.19

Disclosure: Past performance is not necessarily indicative of future results.

EWM Weekly Capital Market Highlights for Week Ending 7/19/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • US equities traded mostly lower during the week on disappointing earnings concerns, worries about the health of the economy, and lack of progress in resolving the trade dispute with China.
  • The Yield on the 10-Year US Treasury Note drifted lower toward 2% over the course of the week, or more than one percentage point below its peak last November.
  • The US dollar finished weaker against a basket of currencies, reflecting rising expectations that the Fed could cut short-term lending rates by 50 basis points, rather than a more typical 25.
  • Gold extended its rally and hit a six-year high on concerns about worsening relations in the Middle East, a lower dollar, and falling government bond yields.
  • Oil prices have declined to their lowest levels in a month, despite growing tensions in the Middle East, as weaker demand and growing US inventories weighed on the market.

Click here to download the complete weekly report: EWMWeeklyReview 7.22.19

Disclosure: Past performance is not necessarily indicative of future results.

EWM Weekly Capital Market Highlights for Week Ended 7/12/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • Among equities, the US stock market peaked this week after Fed Chair Powell indicated a probable rate cut this month. On Thursday, the Nasdaq Composite Index dipped a little after President Donald Trump’s tweet indicating challenges in the trade talks between China and the US. European shares ticked up on Friday as auto and chemical shares pushed the Stoxx-600 higher. Equity indices in the Asia-Pacific region dipped due to weak data from China and Singapore.
  • The yield on the 10-Year US Treasury Note rose to 2.13% following the release of strong inflation data.
  • The Dollar Spot Index started the week with an upward trend. However, the index dipped as the week continued, as the increased possibility of the Fed’s interest rate cut weighed on it.
  • The Trump Administration withdrew its proposal to eliminate rebates from government drug plans. Shares of health insurers such as Cigna Corp (CI), United Health (UNH), and CVS Health (CVS), soared.
  • The US budget deficit increased to $747.1 billion for the first nine months of the fiscal year. This reflects a year-over-year increase of 23.10% for the same time period. The Trump Administration expects this figure to exceed $1 trillion for this fiscal year.

Click here to download the complete weekly report: EWMWeeklyReview 7.15.19

Disclosure: Past performance is not necessarily indicative of future results.

EWM Weekly Capital Market Highlights for Week Ended 6/28/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • Among domestic equitiess, large cap underperformed small caps; growth underperformed value-oriented securities; international equities outpaced US equities; and emerging markets outperformed developed.
  • The yield on the 10-year U.S. Treasury Note rose modestly to 2.05% from 2.02% at the end of the week.
  • Commodities were mostly higher during the week, buoyed by oil. West Texas Intermediate traded at $59.29 versus $57.678 for the prior week.
  • The US Dollar Index was higher, and the dollar rose, supported by stronger-than-expected US jobs data.

Click here to download the complete weekly report: EWMWeeklyReview 6.28.19

Disclosure: Past performance is not necessarily indicative of future results.

EWM Weekly Capital Market Highlights for Week Ended 6/21/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • Equity markets generally were up around the world, as central bank policies continue to be easy in the face of slowing growth and global trade wars. The S&P 500 Index hit a record high after the Fed;s hint of future rate cuts.
  • Emerging markets led the way, rising more than 4% this week, as investors’ risk appetite returned following the accommodative signals from the Fed and the ECB,
  • Volatility fell this week and the CBOE Market Volatility Index (VIX) was down more than 7%.
  • The US dollar was down slightly for the week.
  • Commodity prices were up during the week, led by a surge in oil prices.
  • Treasury yields declined across all maturities, with the yield on the 10-year US Treasury Note falling to its lowest level in two-and-a-half years. The yield curve continued to be inverted.

Click here to download the complete weekly report: EWMWeeklyReview 6.21.19

Disclosure: Past performance is not necessarily indicative of future results.

EWM Weekly Capital Market Highlights for Week Ended 6/14/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • Stocks were flat for the week. Domestic equities, as measured by the S&P 500 Index, declined marginally and were essentially unchanged from the week before. Small cap stocks experience similar performance.
  • The yield on the 10-year US Treasury Note was unchanged. Yields on 10-year bonds ended the week where they started, at 2.08%. The yield curve for Treasurys remains inverted at the short end, with yields for 3-month and 6-month bills being above longer maturities out to 10 years.
  • Geopolitical concerns rise. Two oil tankers were attacked in the Persian Gulf this week, increasing tensions in the region.
  • China’s economy slows. For the month of May, China reported the slowest growth in its industrial output in 17 years.

Click here to download the complete weekly report: EWMWeeklyReview 6.14.19

Disclosure: Past performance is not necessarily indicative of future results.

EWM Weekly Capital Market Highlights for Week Ended 6/7/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • Stocks rallied, with the Dow breaking a six-week losing streak. This was the longest weekly losing streak since June 2011. Domestic equities outpaced international stocks, and emerging markets stocks trailed developed equities. Growth and value traded mostly in line, with both styles experiencing strong weekly gains.
  • The yield on the 10-year Treasury Note was lower, trading below 2.10% for the first time since 2017, and fell to 2.06% on Friday, from 2.14% the prior week.
  • World Bank lowers its outlook for global growth. The World Bank released a research report Tuesday, cutting its forecast to 2.60% for 2019 global growth, down from 2.90% previously, citing a slowdown in trade growth to the weakest level since the financial crisis.
  • ADP Employment Change reading at a three-year low. The monthly jobs report came in well below forecast, at just 27,000 jobs in May, the fewest number created since March 2010, and down from a revised 271,000 in April.

Click here to download the complete weekly report: EWMWeeklyReview 6.7.19

Disclosure: Past performance is not necessarily indicative of future results.

EWM Weekly Capital Market Highlights for Week Ended 5/31/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • Among equities, large caps trailed small caps slightly; growth stocks outperformed value stocks; international stocks beat US stocks; and developed markets underperformed emerging markets.
  • 10-year Treasury yield fell. The yield on the 10-year US Treasury Note slid to 2.17%, as a portion of the yield curve remains inverted, with the 3-month yield sitting at 2.34%.
  • Commodity indices overall had mixed returns for the week. Crude oil prices plunged towards the end of the week, with Brent Crude hovering around $65.
  • Dollar rose. The dollar jumped and the dollar index (DXY) closed at a level close to previous highs posted a month ago.
  • Among major economic data, jobless claims moved slightly higher, and mortgage applications are down 1.00% for the week.

Disclosure: Past performance is not necessarily indicative of future results.