US: S&P 500 Index +.55%, Dow +.36%, Nasdaq +1.35%
Europe: STOXX Europe 600 +.14%, German DAX +.26%, France CAC 40 +.68%, U.K. FTSE 100 -.58%
Asia: Japan Nikkei +.79%, China Shanghai Composite +2.81%, Korea KOSPI +1.23%
10-Year Treasury yield: unchanged at 2.87%, WTI crude oil +3.03%, COMEX gold -1.29%
Investors welcomed a calm week of trading in the U.S. as major indexes were little changed following several weeks of sharp losses and then gains. Subdued Treasury price changes likely contributed to renewed confidence, as the 10-year yield met resistance just below the key 3% level; this despite a series of Treasury auctions throughout the week. Federal Reserve (Fed) minutes released on Wednesday were met with some volatility, as investors balanced positive comments on the economy with more recent economic data showing higher-than-expected inflation.
European markets were also largely flat on the week, despite a series of economic data points that suggest the economy may be peaking; the Eurozone Composite Purchasing Managers’ Index (PMI) for February fell month over month, missing expectations; while the Citi European Economic Surprise Index fell below zero for the first time since late 2016. In addition, several EU policymakers expressed concern about recent euro strength, something which could hurt European exporters and affect inflation. In Asia, Chinese markets were closed for much of the week following the Lunar New Year; Japan’s Nikkei ended the week modestly in the green.
Fourth quarter gross domestic product (GDP) and another round of inflation data, due out Wednesday, highlight the U.S. docket next week. But first, investors will get housing and manufacturing data, as well as consumer confidence to start off the week, capped off by several consumer data reports on Thursday and Friday. Meanwhile, the Eurozone will get also get a series of inflation data and Markit Manufacturing PMIs throughout the week that includes releases from Germany, France, Italy, and the U.K. PMI reports are also due out for Japan and China.
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.
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The Purchasing Managers’ Index (PMI) is an indicator of the economic health of the manufacturing sector. The PMI is based on five major indicators: new orders, inventory levels, production, supplier deliveries, and the employment environment.
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