- US equities seesawed most of the week on worries about a potential recession in the US as well as an escalation of the trade war with China. The S&P 500 Index lost more than 2.5% on Friday after President Trump ordered US companies to “find an alternative to China,” which followed China’s announcement that it would impose new tariffs on $75 billion of US goods. International equities followed a similar pattern, with both developed and emerging markets erasing earlier gains.
- Treasury yields increased across the board, with the yield on the 2-year note increasing more than that of the 10-year note. During the week, the yield curve inverted three times.
- The Markit Flash Manufacturing PMI dropped to 49.9 this month, falling below 50 for the first time in about ten years. The index also was lower than the 50.3 reading forecast by economists in a WSJ survey.
- The Conference Board Leading Economic Index (LEI) ticked up 0.50% from the previous month to 112.2 in July, which signals that the economy will continue to expand in the second half, albeit at a slower pace.
- The University of Michigan’s preliminary August survey showed that consumer sentiment fell to 92.1 in August from the 98.4 level reached in July. The reading, which was well below the market consensus of 97.2, was the lowest since January, and reflects growing concerns of an economic downturn and stock market volatility.
Click here to download the complete weekly report: EWMWeeklyReview 8.26.19
Disclosure: Past performance is not necessarily indicative of future results.