US: S&P 500 Index +4.30%, Dow +4.25%, Nasdaq +5.31%
Europe: STOXX Europe 600 +3.26%, German DAX +2.85%, France CAC 40 +3.98%, U.K. FTSE 100 +2.85%
Asia: Japan Nikkei +1.58%, China Shanghai Composite +2.21%%, Korea KOSPI +2.46%
10-Year Treasury yield: +2 basis points to 2.86%, WTI crude oil +4.09%, COMEX gold +2.44%
Global equities staged a solid rebound this week as volatility subsided and most markets finished solidly in the green. Gains were most pronounced in the U.S., though major indexes stumbled in early trading Wednesday after an unexpected jump in consumer prices spooked traders who were still contemplating the potential impact to the Federal Reserve’s interest rate hike campaign following last month’s larger-than-expected pickup in wages. In addition, retail sales data that showed consumers spent less in January than economists were expecting also weighed on sentiment. Stocks quickly regained their footing, however, as upbeat corporate earnings continued to roll in and a series of overseas fourth quarter gross domestic product reports showed sustained-to-improving overall growth in the global economy.
Next week, U.S. markets are closed Monday in observance of President’s Day. Highlights over the remainder of the week include Purchasing Managers’ Index (PMI) data and existing home sales on Wednesday; and the Leading Economic Indicators on Thursday, along with an update on the Kansas City Fed Manufacturing Index. The foreign docket is more robust, with consumer inflation and PMI data due out for Germany, France, and the Eurozone. In Asia, investors will get Japan’s trade figures and manufacturing PMI to digest as the Bank of Japan conducts another series of outright bond purchases throughout the week.
Please see the methodology and assumptions used in GWP.
IMPORTANT: The projections or other information generated by GWP regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Results may vary with each use and over time.