In the Markets – Week-Ending March 11
Newsletter: In the Markets – Week-Ending March 11
Crystal Brook Advisors
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United States: Consumer credit increased a lower-than-expected $10.5 billion to begin the year.(1) Small business optimism declined 1.0 point to 92.9 in February, as all index subcomponents declined or remained unchanged in the month.(2)
Europe: Mario Draghi delivered interest-rate cuts, more bond purchases and a potential subsidy to lenders in a renewed attack against the threat of deflation, before whipsawing the euro by saying the European Central Bank is done with lowering borrowing costs for now.
Asia: The onshore yuan advanced to the strongest level since December after China’s central bank raised its daily reference rate by the most in four months.(3)
Monday 03/07
• Treasury yields rose to the highest levels in more than a month on Monday as investors warmed up to the idea that the Federal Reserve will likely raise U.S. interest rates at least once or twice this year, widening the spread between rates in the U.S. and abroad.(4)
Tuesday 03/08
• Fall in global rig counts and positive comments from United Arab Emirates’ (UAE) energy minister and Ecuador’s foreign minister helped oil prices to register strong gains, which also had a positive impact on energy shares .(5)
Wednesday 03/09
• Over the past year the yield curve has flattened, and we expect it to flatten further in the coming year. A number of factors play a role in the shape of the curve, one of which is foreign capital flows .(6)
• U.S. stocks closed higher on Wednesday as oil futures recovered, providing some relief for battered energy shares.(7)
Thursday 03/10
• After a larger-than-expected surplus in January, the budget pendulum swung the other direction in February, leading to a $192.6B deficit.(8)
Friday 03/11
• For the eighth consecutive month, total import prices fell. In addition to lower petroleum costs, imported food prices were significantly lower .(9)
• With a sequential growth rate of 0.6 percent in the last quarter of 2015, the Colombian economy posted a 3.1 percent rate of growth in full-year 2015 compared to 4.4 percent for 2014.(10)
Market Close
U.S. stocks finished higher Friday, clinching their fourth straight weekly gain and highest close of the year, as crude oil prices rallied and worries about slowing global growth faded. The S&P 500 SPX, +1.64% closed 32.49 points, or 1.6%, higher at 2,022.09 The Dow industrials DJIA, +1.28% finished 217.64 points, or 1.3%, higher at 17,212.77, led by Pfizer Inc.[ and E. I. du Ponte de Nemours and Company. The Nasdaq Composite NDAQ, +1.55% finished 86.31 points, or 1.9%, higher at 4,748.47.(11)
Contributor: Felipe Vargas-Zúñiga
Sources:
(1) Source: Federal Reserve Board, Federal Reserve Bank of New York and Wells Fargo Securities, LLC
(2) Source: National Federation of Independent Business and Wells Fargo Securities, LLC
(3) Source: Bloomberg
(4) Source: MarketWatch
(5) Source: Zacks
(6) Source: Bloomberg LP, U.S. Department of the Treasury and Wells Fargo Securities, LLC
(7) Source: MarketWatch
(8) Source: U.S. Department of the Treasury, U.S. Department of Commerce and Wells Fargo Securities, LLC
(9) Source: U.S. Department of Labor and Wells Fargo Securities, LLC
(10) Source: IHS Global Insight and Wells Fargo Securities, LLC
(11) Source: MarketWatch
