Market Update: Friday, May 18, 2018

MacroView_header

Daily Insights

  • One Royal Union comes together as another breaks apart. Prince Harry and Meghan Markle will wed on Saturday. Around 600 guests are expected to attend, a small crowd in comparison to the Duke and Duchess of Cambridge (William & Kate) who wed in front of 1,900 guests. In other British union news–though it may not getting quite as much media coverage–Brexit negotiations are ongoing as Britain works to separate itself from the European Union (EU). Talks have proven to be quite contentious with reports swirling in the media that perhaps British Prime Minister Theresa May will ask for an extension beyond 2020 to define the terms of a post-Brexit Britain. Big issues include disruption to company supply chains, the Ireland border, the EU rejecting a piecemeal approach, and the presence of the euro-skeptics who want a hard break. All of this has created tensions that cloud the economic outlook in Britain, which we discuss later today on the LPL Research blog.

  • Did they or didn’t they? Reports came out that China offered to cut the trade deficit with the U.S. by up to $200 billion a year. However, the Chinese foreign ministry spokesman said the rumors weren’t true and negotiations were still ongoing. These negotiations are a process and will take time, but all sides appear to still be willing to negotiate and find common ground.

  • NAFTA misses the deadline. The Thursday deadline set by House Speaker Ryan for a deal to be approved by Congress this year has officially passed. U.S. Trade Representative Lighthizer said that NAFTA countries are “nowhere near” a new deal. This comment got the headlines, but others continue to be optimistic that a deal can happen. In fact, Canadian PM Justin Trudeau said he felt positive about talks overall and Mexico’s Economy Minister said a deal could be reached by the end of May.

MonitoringWeek_header

Click Here for our detailed Weekly Economic Calendar

Friday

  • Germany: PPI (Apr)

 

IMPORTANT DISCLOSURES

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. The economic forecasts set forth in this material may not develop as predicted.

All indexes are unmanaged and cannot be invested into directly. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment.

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

This research material has been prepared by LPL Financial LLC.

To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL Financial LLC is not an affiliate of and makes no representation with respect to such entity.

The investment products sold through LPL Financial are not insured deposits and are not FDIC/NCUA insured.  These products are not Bank/Credit Union obligations and are not endorsed, recommended or guaranteed by any Bank/Credit Union or any government agency.  The value of the investment may fluctuate, the return on the investment is not guaranteed, and loss of principal is possible.

Index data obtained via FactSet

Member FINRA/SIPC

For Public Use – Tracking # 1-731953 (Exp. 5/19)