Market Update: Monday, June 25, 2018

MacroView_header

Daily Insights

  • Our “trade tensions” playbook in today’s Weekly Market Commentary. Hardly news to anyone at this point, escalating trade tensions have made for a difficult investing environment. But investors’ angst was ratcheted higher last week after the Trump Administration played its next card–an additional $200 billion in tariffs announced on Chinese goods–sooner than many expected, and media reports suggest that the next salvo from the White House will be to restrict Chinese investment in certain U.S. technology companies and enhance export controls to prevent “industrially significant technology” from becoming available to China. Certainly, the stock market expressed displeasure, though the 0.9% drop in the S&P 500 Index for the week still leaves the index with a respectable 4% return year to date; while trade measures enacted–or likely to be enacted–are likely already taking a small bite out of the U.S. fiscal stimulus, and there is increasing anecdotal evidence that some businesses are delaying investment until they have greater clarity on how trade disputes with China and other major trading partners resolve. In this week’s Weekly Market Commentary and Weekly Economic Commentary, we look at the impacts to businesses and the financial markets, and discuss how we’re playing it.

  • The week ahead. Key data points and events to monitor in the U.S. this week include consumer confidence, personal spending and income data. Inflation reports headline the overseas docket with releases out of Germany, Italy, France, the Eurozone, and Japan. See all of the important economic data due out this week in our Weekly Economic Calendar.

MonitoringWeek_header

Click Here for our detailed Weekly Economic Calendar

Monday

  • New Home Sales (May)
  • Germany: IFO (Jun)

Tuesday

Wednesday

Thursday

  • GDP Annualized (Q1)
  • Germany: CPI (Jun)
  • Italy: CPI (Jun)
  • Eurozone: Consumer Confidence (Jun)
  • Japan: Tokyo CPI (Jun)
  • Japan: Industrial Production (May)

Friday

  • Personal Income (May)
  • Personal Spending (May)
  • France: CPI (Jun)
  • UK: GDP (Q1)
  • Eurozone: CPI (Jun)
  • Japan: Consumer Confidence (Jun)
  • China: Mfg. & Non-Mfg. PMI (Jun)

 

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.

All performance referenced is historical and is no guarantee of future results.

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.

Member FINRA/SIPC

For Public Use – Tracking # 1-743490 (Exp. 6/19)