Outlook Brightening for Emerging Markets

Market Blog
December 19, 2019

The outlook has brightened for stocks in emerging markets. A key reason is the trade agreement the United States reached with China last week, even if it’s only phase one. We acknowledge tensions could escalate again as negotiations move to the next phase, but this is still a clear positive any way you slice it. The de-escalation in trade tensions can help support the economic growth outlooks for emerging-market countries, particularly China and its key Asia trading partners. Continue reading

Market Update: Thurs, Dec 19, 2019 | LPL Financial Research

Daily Insights

Markets largely quiet overnight. Asian and European markets saw marginal declines overnight, while U.S. futures sat near flat. Whatever the political significance of impeachment, financial markets have been largely indifferent, and we expect little impact during the Senate trial in early 2020. Continue reading

Don’t Fear the Repo

Economic Blog
December 18, 2019

The fourth quarter is winding down, and investors are getting nervous that volatility in the short-term lending market could flare up once again.

Rates on repurchase agreements (repos) jumped in September 2019 amid a shortage of cash available to lend, forcing the Federal Reserve (Fed) to restore balance in the system by purchasing U.S. Treasuries and other securities from firms. We covered that episode in our blog, “The Repo Market’s Perfect Storm, on September 27.

Continue reading

Market Update: Wed, Dec 18, 2019 | LPL Financial Research

Daily Insights

Drifting higher. U.S. stocks are searching for direction this morning as 2019 winds down and trade headlines dissipate. Equities could continue drifting higher on seasonal tailwinds, as the second half of December historically has been one of the strongest periods for the S&P 500 Index. Continue reading

Is It Time For Santa?

Economic Blog
December 17, 2019

December has been widely viewed as a strong month for stocks, with this year following suit so far. What many probably don’t realize, however, is the majority of the gains have taken place late in the month.

“December has been a good month so far, but can it continue? Turns out, the majority of December’s gains have tended to happen in the second half of the month—so we still have time to believe in Santa,” explained LPL Senior Market Strategist Ryan Detrick.

Continue reading

Market Update: Tues, Dec 17, 2019 | LPL Financial Research

Daily Insights

A strong day. Global stocks are taking a breather after a strong day full of milestones. The S&P 500 Index notched its third consecutive record high on news of a partial U.S.-China trade deal. The Stoxx 600 Index of European stocks closed at its first record high since April 2015, and the Nikkei Index hovered around a 14-month high first reached late last week. Continue reading

Market Update: Mon, Dec 16, 2019 | LPL Financial Research

Daily Insights

Stocks higher. Stocks are higher this morning, adding to gains after the S&P 500 Index capped its ninth weekly increase in 10 weeks. The U.S-China limited trade agreement has boosted risk sentiment around the world, and the tariff hike scheduled for December 15 has officially been delayed. Continue reading

UK Election Result Delivers (Some) Brexit Clarity

Economic Blog
December 13, 2019

Boris Johnson is still the Prime Minister of the United Kingdom (U.K.) after the British public voted Thursday to give his Conservative party a clear victory.

After a contentious campaign dominated by the prospect of the U.K.’s withdrawal from the European Union (E.U.), or Brexit, the Conservatives gained a large majority of Members of Parliament (M.P.), campaigning to “get Brexit done,” beating out the opposition Labour Party, who advocated a second Brexit referendum.

Continue reading

Market Update: Fri, Dec 13, 2019 | LPL Financial Research

Daily Insights

A surge of headlines. Stocks around the world are higher this morning after a flurry of trade and geopolitical headlines. The United States announced it had reached a limited trade agreement with China, but China has yet to confirm it has agreed to a deal and President Trump disputed reports of tariff rollbacks. Continue reading