WEEKLY CAPITAL MARKET HIGHLIGHTS:
- Volatility ticked higher, in what is typically a light trading, holiday- shortened week, amid political turmoil in Italy at the beginning of the week, and the re-emergence of global trade war concerns. In that context, equities finished mixed, as they battled back from the Italian political crisis that followed a strong US jobs report. Domestic stocks outperformed international, and small caps outpaced large caps.
- The Yield on the 10-Year Treasury Note traded as low as 2.76% on Tuesday, a level not seen since early April, but finished the week approaching 2.9%, following the jobs data.
- Spain PM loses confidence vote. On Friday, Spain’s Primer Minister, Mariano Rajoy, was forced out in a no-confidence vote led by the country’s opposition Socialist party.
- Chinese A-shares are added. On Friday, 230 Chinese stocks were added to the MSCI Emerging Markets Index. This partial inclusion of A-shares (securities that are traded on the mainland) brings China exposure in the benchmark to 31%.
- Among major economic data, personal income rose 0.3% in April; consumer spending jumped 0.6%, its largest increase in five months; and initial jobless claims fell to 221,000, which was both lower than expected and a drop from the prior week.
Click here to download the complete weekly report: Endowment Wealth Management Weekly Review June 1, 2018