WEEKLY CAPITAL MARKET HIGHLIGHTS:
- Global equities followed the US lead for the week, with European markets down roughly 4% and Asian markets down more than 5%. Emerging markets equities also were down more than 5%, led by China at -6.7%. The Latin American markets were the only positive region for the week, driven by a post-election rally in Brazil.
- Treasury yields mostly lower. After last week’s sharp rise, Treasury rates fell back in a shortened week of trading. Both 10-year and 30-year yields were down roughly eight basis points to 3.16% and 3.33%, respectively. Treasury notes from 3-months to 1-year were up 2 to 4 basis points.
- The US Dollar Index was modestly lower on the week. A slight weakening against both the euro and yen was partially offset by strength against the Chinese yuan.
- Crude oil finished the week down more than 3% after a modest rise in the first half of the week. Falling global equity prices and rising supplies were the driving factors in the Thursday sell-off.
- Among other economic data released this week: The IMF cut its forecast for global growth by 0.2% to 3.7% for both 2018 and 2019. Several banks opened up the third quarter earnings season with upbeat reports. JPMorgan Chase, Citigroup, Wells Fargo, and PNC Bank all reported increases in net earnings.
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