Weekly Market Drivers | LPL Financial Research

Positive Trade, Budget Negotiations offset Mixed Economic Data

US: S&P 500 Index +2.5%, Dow +3.1%, Nasdaq +2.4%
Europe: STOXX Europe 600 +3.0%, German DAX +3.6% France CAC 40 +3.9%, U.K. FTSE 100 +1.7%
Asia: Japan Nikkei +2.8%, China Shanghai Composite +2.5%, Korea KOSPI  +0.9%
Rates/Commodities: 10-Year Treasury yield -4 basis points to 2.66%, WTI crude oil +5.9%, COMEX gold: +0.8%

Positive developments on the U.S. budget and trade negotiations underpinned a solid week of gains, though mixed economic data tempered investors’ enthusiasm. Continue reading

Market Update: Thurs, Feb 14, 2019 | LPL Financial Research

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Daily Insights

China trade surplus with the U.S. narrowed. Though distorted by the Chinese New Year, China’s trade surplus narrowed from $29.9 billion in December to $27.3 billion in January. Overall, Chinese exports (+9.1% year over year) rose more than expected-a positive global economic signal-while imports (-1.5% year over year) fell less than expected. Continue reading

The Year of the Pig Could Have Bulls Smiling

“Bulls make money, bears make money, and pigs get slaughtered.” Old Wall Street saying.

The Chinese New Year (often called the Lunar New Year) kicked off Tuesday, February 5, and with it came the Year of the Pig. Although we would never suggest investing based on the zodiac signs—it is important to note that the Year of the Pig has historically been quite strong for equities.

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Bund Yields Hover Around Negative

Germany’s benchmark bund yield is on the cusp of negative territory, a symptom of increased appetite for government debt that could eventually weigh on U.S. rates. The 10-year bund yield, which closed at 0.09% (9 basis points, or bps) February 8, could go negative for the first time since late 2016 as Europe’s biggest economy battles economic weakness and falling inflation.

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Market Update: Mon, Feb 11, 2019 | LPL Financial Research

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Daily Insights

Slower, but solid fourth quarter earnings. With two-thirds of S&P 500 Index companies having reported quarterly results so far, corporate America has delivered solid 17% earnings growth for the quarter. However, slowing global growth and trade tensions have challenged the outlook, setting up slower earnings gains in the coming year. Continue reading