- Equity markets around the globe rallied, as better-than-expected China PMI manufacturing data brought in a risk-on mood to Asian and European markets. Asian stocks continued their rally on speculation that the US and China could be endorsing a trade deal in weeks. Markets also were supported by the news that MSCI Index will quadruple the weight of China A shares in global indices by November. US markets ended February on a positive note, as the Fed pause and potential trade truce acted as tailwinds. Small caps outperformed large caps, and growth outperformed value
- The yield on the 10-year U.S. Treasury traded mostly higher during the week. Yields rose on Thursday, as fourth-quarter Gross Domestic Product (GDP) data came in higher than what markets had expected. German yields rose sharply on hopes that a no-deal Brexit will be avoided.
- The Dollar Spot Index (DXY) climbed to its highest level in more than a week.
- Tesla Inc. (TSLA) and Elon Musk were in the news after the SEC said Mr. Musk’s tweets violated his court settlement. Tesla’s stock price headed sharply lower after he warned that the company will not show a profit in Q12019.
- Among major economic data, initial jobless claims increased by 8,000 for the week ending February 23. Housing Starts declined 11.20% month over month in December, while Building Permits were up 0.30% for the same period.
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Disclosure: Past performance is not necessarily indicative of future results.