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Newsletter: In the Markets – Week-Ending December 22nd, 2017

, Friday December 22, by Categories: In the Markets

Newsletter: In the Markets – Week-Ending December 22nd, 2017

Crystal Brook Advisors

We Make Financial Planning Crystal Clear™

 

United States: The tax reform finally passed and was signed into law. News of this reform drove markets in the past few weeks worldwide. Investors are excited about the news as they expect corporate earnings to rise, as the corporate tax rate was cut to 21% from 35%. Also, investment in the U.S. is expected to increase as corporations shift their money from abroad back to the U.S. (1)

Europe: Elections were held in Catalonia, Spain caused markets to tumble in the region after Catalonia separatists regained power. Future business could be threatened if the region’s leaders decide to secede from Spain. (2)(3)

Asia: The Asian markets were all up following the news of the U.S. tax reform passage by lawmakers. Shanghai finished up 0.1%, Sydney up 0.2%, and Hong Kong and  Singapore up 0.3%. The Nikkei finished out the day flat. (4)

Latin America: The Mexican Peso finished down by 0.8% following a corruption scandal. Also, investors are fearful that with the passage of the U.S. tax reform, they will lose out on investments as they shift to the U.S. (2)

 

Monday 12/11  

  • Eight of eleven sectors S&P 500 sectors were up on the day, with financials up 0.7%, energy up 0.8% and material stocks up 1.5%. Adding to this, all three major U.S. indexes hit intraday records, with the Nasdaq Composite reaching above 7000, before slightly dropping. Markets were largely moved by news of tax reform. (1)

Tuesday 12/12

  •  In a reversal from trading on Monday, eight of the eleven major S&P 500 sectors finished down on the day. The Dow Jones, S&P 500, and Nasdaq Composite all finished slightly down during the day. In other news, housing starts are up 3.3% from October and 12.9% higher than the same time the previous year, according to the Commerce Department. (1)

Wednesday 12/13

  • Wednesday trading was similar to Tuesday’s results, with all three major indexes slightly down on the day, still awaiting the tax reform to be finalized. (1)

Thursday 12/14

  •  Energy and financial stocks were up 2.1% and 0.9%, respectively. Additionally, all major indexes reversed course and finished up after struggling the past two days. The DJIA and S&P 500 were up 0.2%, while the Nasdaq Composite was up 0.1%. (1)

Friday 12/15

  • President Trump officially signed the tax reform into law. The DJIA, S&P 500, and Nasdaq Composite all finished slightly down for the day, but all finished higher on the week. (1)

 

Contributor: Nikolas Madonis

Sources:

  • (1) Marketwatch, (2) Reuters, (3) CNBC, (4) The Straits Times

 

 

 

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