Current Investment Perspectives
Despite strong earnings reports, the S&P 500 Index fell 0.1% on the week as investors eyed Washington’s ongoing tax negotiations. European stocks also faced pressure, with the Stoxx Europe 600 down 1.2% amid European Central Bank (ECB) President Mario Draghi’s emphasis on patience in the face of subdued inflation (even in light of improved economic growth).
Global equity markets retreated on uncertainty over the prospects for US tax reform and disappointing 3Q corporate earnings reports. The S&P 500 fell 0.2% over doubts that Washington successfully enacts tax reform before 2019. Underwhelming earnings announcements in Europe pushed the Stoxx 600 down 1.8%, while Japan’s TOPIX edged off of its 25 year high but still ended the week up 0.4%.
The S&P 500 lacked a clear trajectory, ending the week roughly flat, as investors processed developments from Washington regarding tax reform and the Fed chair nomination. In Europe, the Stoxx 600 touched a fresh 2-yr. high as stronger cyclical data continued to push up analysts’ earnings expectations for the region. Japan’s TOPIX was up 1.3% with foreign demand for stocks reaching its strongest level in four years, providing a source of technical support for the current rally.
Continue: November 6, 2017 Investment Perspectives
US equities moved higher with the S&P 500 rising 0.9% as the Senate passed a $1.5T deficit budget blueprint. The approval of the budget is seen as a step forward for the Trump tax cut agenda. The FTSE 100 was flat as miners led the index late-week following the release of China’s higher than expected industrial production figures. Euro weakness and concerns over the Catalonia referendum pushed the Stoxx Europe 600 down 0.3%.
Continue: October 23, 2017 Investment Perspectives
The S&P 500 index recorded its 42nd all-time high for the year with volatility, measured by the VIX, still near record lows. This market action has been supported by strong economic fundamentals. We are almost at 500th day since the last weighty market correction (measured by a drop of the S&P 500 of more than 10%). European, Japanese, and emerging market equities also finished the week higher.
Continue: October 9, 2017 Investment Perspectives
The S&P 500 Index rose 0.7% last week as a more optimistic outlook on tax reform took root. Emerging Markets stocks ended the week down 1.8% after a stronger US dollar and expectations of rising US interest rates weighed on the market.
Continue: October 2,2017 Investment Perspectives
S&P 500 ended up 0.09% as markets reacted to the increased geopolitical tensions as well as the Fed’s announcement on policy. Nevertheless, volatility remained in check, with the VIX hovering near its all-time lows. The Stoxx Europe 600 Index rose 0.68% primarily boosted by financials.
The S&P 500 started the month on a cautious note, down -0.6% as reports of nuclear developments in North Korea and Hurricane Irma spurred risk aversion. The S&P 500 snapped a six-day winning streak, its longest in a year. European stocks reacted positively when the ECB kept rates steady, but finished the week down -0.1% as gains were capped by euro strength. The Japanese TOPIX traded near four-month lows and closed down -1.6%, as investors anticipate possible tensions during North Korea’s founding anniversary over the weekend.
The S&P 500 saw a boost from upbeat economic data releases and notched its fourth positive week, the longest streak in three months, ahead of the Labor Day holiday.
Thematic Research Reports