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Weekly Capital Market Updates

EWM Weekly Capital Market Highlights for Week Ending 12/20/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • Global equity markets were up broadly this week. US markets were led by the tech-heavy NASDAQ, with the DIJA, S&P 500 Index, and NASDAQ notching intraday record highs early Friday. International stocks were largely up; however, they trailed emerging markets, which posted strong returns for the week. Brazil and Argentina contributed significantly, while Turkey detracted.
  • Treasury yields rose on Wednesday. The yield on the 10-year U.S. Treasury Bill and the 30-year U.S. Treasury Bond both rose 3.4 basis points to 1.92% and 2.35%, respectively, their highest levels since early November.
  • Commodities rose, with the Bloomberg Commodity Index finishing marginally higher after an overall positive week. Within the index, oil prices jumped, lifted by the “phase-one” US-China trade deal that appears to have eased tensions.
  • The US dollar ended the week higher against a basked of major trade partners’ currencies. On Friday, the dollar was set for its best week since early November, after a number of encouraging US economic data releases, which make a near-term cut in interest rates less likely.
  • In other economic news, third-quarter gross domestic product (GDP) remained at 2.1%, buoyed by strong consumer spending, the main engine of economic growth in the US. This uptick in spending was offset by a decrease in business investment, falling from 2.7% to 2.3%.

Click here to download the complete weekly report: EWMWeeklyReview 12.23.19

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

EWM Weekly Capital Market Highlights for Week Ending 12/13/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • US equities seesawed during the week, affected by the impeachment proceedings and the announcement of a”phase one” trade deal with China. The S&P 500 Index ended the week slightly higher. European equities fared better, posting gains of over 1% for the week. UK stocks surged by over 1.5% on Friday after the landslide victory for the Tories. Emerging markets equities were the bright spot of the week, up by almost 3%.
  • Treasury yields increased most of the week but fell on Friday after the announcement of the partial trade deal with China. The yield on the 10-year note fell below 1.83%.
  • Commodity prices floated higher, sustained by strength in energy prices. Gold also soared during the week after the Fed decision to leave rates unchanged and the trade deal announcement on Friday.
  • US retail sales rose less than expected in November, posting a gain of only 0.2%, after increasing 0.4% in October.
  • US consumer prices increased more than expected in November, posting a gain of 0.3%. The number was affected by increased gasoline costs. US producer prices however were unchanged in November, with declining costs of services offsetting the increases in food and gasoline prices.
  • US Weekly jobless claims surged to 252,000 for the week ending December 7, the highest reading since September 2017. The period following the Thanksgiving Day holiday is notoriously volatile however, which means that the high jobless numbers does not necessarily signal an increase in layoffs.

Click here to download the complete weekly report: EWMWeeklyReview 12.16.19

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

EWM Weekly Capital Market Highlights for Week Ending 12/6/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • Domestic equities were slightly positive to flat for the week, with small cap stocks appreciating the most and value stocks outpacing growth. International equities were positive for the week, outpacing their domestic counterparts, but emerging markets stocks ended the week in slightly negative territory.
  • The Treasury yield curve steepened through end-of-day Thursday, with shorter-term yields falling while longer-term yields increased.
  • The US dollar weakened during the week, as US manufacturing data came in worse than expected, renewing concerns about the slowing economy.
  • Commodities appreciated for the week on the back of strong returns from energy prices and a slight upward move for gold.
  • In other economic news, the Institute of Supply Management (ISM) has released the November Non-Manufacturing Purchasing Manager’s Index (PMI) and reported a headline composite number of 53.9, down 0.8 from last month Despite the decline, this reading represents continued growth in the non-manufacturing sector.

Click here to download the complete weekly report: EWMWeeklyReview 12.09.19

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

EWM Weekly Capital Market Highlights for Week Ending 11/22/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • US equities traded down slightly on the week, following uncertainty in US-China trade talks as a result of tensions in Hong Kong.
  • The yield on the 10-year US Treasury Note declined from 1.83% at the start of the week to 1.77% at the end of the week.
  • The US dollar finished basically flat against a basket of currencies, sliding modestly from 97.99 to 97.91.
  • WTI crude hit its highest level in a month on November 22, trading at $58.68/barrel as of midday Friday.
  • October Federal Reserve minutes were more optimistic, citing easing, yet still elevated, geopolitical risks and trade tensions. Despite having cut the federal funds rate to a range of 1.5% – 1.75% at its late-October meeting, the central bank signaled a pause in rate cuts going forward.

Click here to download the complete weekly report: EWMWeeklyReview 11.25.19

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

EWM Weekly Capital Market Highlights for Week Ending 11/15/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • Stocks in the US were up slightly for the week. Large cap stocks outperformed their small cap counterparts. Meanwhile, value stocks under-performed growth stocks.
  • Short-dated Treasury yields (six months and shorter) fell slightly during the week, while longer-dated Treasury yields fell. Treasuries dated from five to 30 years fell around 10 basis points, leading to a flattening of the yield curve.
  • Developed markets stocks saw slight weakness during the week and under-performed US stocks. Growth stocks outperformed value stocks in developed markets. Emerging market stocks fell, declining by 2% during the week.
  • Volatility was up in markets, as measured by the VIX, which increased more than 7% during the week.
  • Commodity prices were largely lower for the week, led by crude oil, as OPEC indicated it was planning to maintain curbs on crude output throughout next year but would hold off on more aggressive cuts.

Click here to download the complete weekly report: EWMWeeklyReview 11.18.19

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

EWM Weekly Capital Market Highlights for Week Ending 11/8/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • Global equities traded higher this week, with developed markets posting modestly positive returns and international equities slightly edging out domestic stocks. Emerging markets led the way, up more than 2% on the week. Value outperformed growth across all regions.
  • The yield on the 10-Year U.S. Treasury Note pushed higher over the course of the week, beginning at 1.71% on Monday and finishing the week over 1.90% for the first time since late July.
  • The US dollar traded higher all week against a basket of currencies, riding the momentum of higher Treasury yields,  after depreciating for most of October.
  • Gold suffered its biggest weekly percentage decline in two-and-a-half years, giving up more 3% as deescalating trade tensions between the US and China have helped reinvigorate investors’ appetite for risk.
  • In other economic news, the Labor Department’s JOLTS report (which tracks monthly changes in job openings) fell 3.8% in September to 7.024 million. This is the lowest total since March of last year, and may indicate the trade war with China is beginning to takes its toll on the economy.

Click here to download the complete weekly report: EWMWeeklyReview 11.11.19

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

EWM Weekly Capital Market Highlights for Week Ending 11/1/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • Domestic equities rose for the week, with small cap stocks appreciating the most and growth stocks outpacing value. International equities and emerging markets stocks also ended the week in positive territory but failed to keep pace with their domestic counterparts.
  • Treasury yields across the curve were down through end-of-day Thursday, with shorter-term yields falling more than longer-term yields.
  • The US dollar weakened against a basket of major trade partners’ currencies during the week, as the Federal Reserve cut rates by 25 basis points.
  • Commodities declined for the week, as lower energy prices outweighed the upward move for gold.
  • In other economic news, US gross domestic product (GDP) grew at a rate of 1.90% for the third quarter on continued expenditures from the government and the consumer. Despite the contracting business investment, the US economy grew at a faster rate than most economists expected.

Click here to download the complete weekly report: EWMWeeklyReview 11.04.19

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

EWM Weekly Capital Market Highlights for Week Ending 10/25/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • US equities traded higher last week, with small caps up roughly 1.70% and large caps up 1.30%. The S&P 500 Index traded above its all-time closing high early in Friday’s trading. The emerging markets had a strong week as well, up more than 1.30%.
  • The yield on the 10-year US Treasury Note traded in a relatively narrow range this week. It reached a peak of 1.81% early Monday and a low of 1.74% on Wednesday before finishing the week at the upper end of the range.
  • The US dollar traded higher all week against a basket of currencies, reversing a downward trend that had been in place since late September.
  • Gold traded mostly sideways for the first part of the week before a rally on Thursday and Friday pushed prices up more than 1%. The precious metal has traded right around the $1,500 level since early August, after rallying roughly 15% from late-May levels.
  • Oil prices rallied more than $3 per barrel this week after the Energy Information Administration reported a surprise drop in US oil and oil product inventories on Wednesday. Prices have been rising slowly all month after falling from a three-month high in mid-September.

Click here to download the complete weekly report: EWMWeeklyReview 10.28.19

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

EWM Weekly Capital Market Highlights for Week Ending 10/18/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • US equities had moderate gains this week. The market sentiment was supported by decent earnings reports and news of a draft Brexit deal, but also was dampened by some weak economic data.
  • The yield on the 10-year US Treasury Note recovered from declines seen in the early part of the week and hovered around 1.75% for most of the week.
  • Gold prices rebounded from some of the small sell-off seen in the initial days of the week, as concerns about the preliminary Brexit deal’s approval by the British Parliament and weaker-than-expected US economic data drove the price upward.
  • Oil had a mixed week, as a greater-than-expected increase in the US’s stock pile amid a global slowdown drove the price down midweek. But news from the cease-fire pact in Syria and tentative Brexit deal enabled oil to regain some of the lost ground on Thursday.
  • Netflix Inc. reported revenue of $5.25 billion, up 31% from a year ago, and earnings per share of $1.47. The streaming giant also said that it had a net addition of 6.77 million paying subscribers in its third quarter. However, the company’s projections for fourth-quarter additions were lower than analysts’ expectations.

Click here to download the complete weekly report: EWMWeeklyReview 10.21.19

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

EWM Weekly Capital Market Highlights for Week Ending 10/11/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • US equities rallied at the end of a week of speculation on trade talks between the US and China, up between 1%-2%. Non-US equities also rose, with most major indices up 1%-2%.
  • The yield on the 10-year US Treasury Note jumped to more than 1.70% to close the week with hopes of progress in US/China trade talks. The 3-month/10-year Treasury curve was positive, a change from the inverted yield curve that historically has been a recession indicator.
  • The US dollar finished weaker against a basket of currencies, reflecting both rising expectations of a Fed rate cut later this month and optimism over a limited trade deal with China to close the week.
  • Gold fell about 2% on the week as of Friday’s trading.
  • Oil prices soared upon the news of an alleged missile attack on an Iranian tanker. Brent crude and WTI futures rose between 1.50%-2.00%.

Click here to download the complete weekly report: EWMWeeklyReview 10.14.19

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