In the Markets – Week-Ending June 10
Newsletter: In the Markets – Week-Ending June 10
Crystal Brook Advisors
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United States: Federal Reserve Chairwoman Janet Yellen affirmed that the central bank won’t be raising short-term interest rates until new uncertainties about the economic outlook are resolved.(1)
Europe: German industrial orders dropped more than expected in April due to weak demand – especially from outside the eurozone.(2) Swiss voters overwhelmingly rejected a controversial initiative that would have guaranteed all Swiss residents a minimum income on which to live.(3)
Asia: China’s foreign exchange reserves slipped last month to the lowest level since 2011, likely due to the impact of a stronger dollar.(4)
Monday 06/06
• Oil markets opened the week trading higher, as global supply outages curbed supply.(5)
• Global alcohol makers are bracing for a potentially precedent-setting court decision in Scotland over whether the country will become the first to implement a floor on alcohol prices.(6)
Tuesday 05/31
• Stocks across the globe are lit up green as a dovish tone from Janet Yellen cooled near-term U.S. rate hike bets and WTI came closer to $50 a barrel.(7)
• Verizon Said to Bid $3 Billion for Yahoo’s Web Assets.(8)
Wednesday 06/01
• Oil reached fresh highs after data showed a decline in U.S. crude stockpiles and strong China demand.(9)
• Yahoo is stepping up its fire sale with the addition of a portfolio of about 3,000 patents it hopes will fetch more than $1B.(10)
• As the European Central Bank started buying bonds from telecommunication, insurance and utility companies, yields in the eurozone corporate bond market tumbled to fresh lows.(11)
Thursday 06/02
• Thursday’s sale of 30-year Treasury debt attracted some of the highest foreign demand ever, showing the appetite around the world for better-yielding government bonds as yields on debt in Germany, the U.K. and Switzerland hits record lows.(12)
• Forecasters have sharply lowered their expectations for job growth in the coming year after employers added just 38,000 jobs in May.(13)
Friday 06/03
• Global stocks dropped and government bond yields in Germany, Japan and the U.K. hit all-time lows as a range of political and economic uncertainties continued to take a toll.(14)
• Oil prices have retreated to below $50 a barrel as a stronger dollar pulls crude off the 2016 highs hit this week despite a major attack by the Niger Delta Avengers.(15)
Market Close
U.S. stocks closed lower Friday, with only blue chips holding onto slight gains for the week, as anxiety over a possible exit of the U.K. from the European Union and a drop in oil prices weighed on markets. The Dow Jones Industrial Average DJIA, -0.67% fell 119.85 points, or 0.7%, to close at 17,865.34, for a weekly gain of 0.3%. The S&P 500 Index SPX, -0.92% declined 19.41 points, or 0.9%, to finish at 2,096.07, for a loss of 0.2% on the week. The Nasdaq Composite Index COMP, -1.29% dropped 64.07 points, or 1.3%, to close at 4,894.55, for a weekly loss of 1%. Oil futures CLN6, -3.14% slipped back below $50 a barrel, settling down 3% at $49.07.(16)
Contributor: Oscar Xia
Sources:
(1) Source: Wall Street Journal
(2) Source: Seeking Alpha
(3) Source: Wall Street Journal
(4) Source: Seeking Alpha
(5) Source: Wall Street Journal
(6) Source: Seeking Alpha
(7) Source: Seeking Alpha
(8) Source: New York Times
(9) Source: Wall Street Journal
(10) Source: Seeking Alpha
(11) Source: Wall Street Journal
(12) Source: Wall Street Journal
(13) Source: Wall Street Journal
(14) Source: Wall Street Journal
(15) Source: Seeking Alpha
(16) Source: MarketWatch
