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Newsletter: In the Markets – Week-Ending June 16th, 2017

by Peter J. Creedon

Newsletter: In the Markets – Week-Ending June 16th, 2017

Crystal Brook Advisors

We Make Financial Planning Crystal Clear™


United States:  Contracting for the third straight month, a 3.9 percent drop in petroleum costs led import prices to decline by the largest monthly amount since February 2016. Total import prices are up 2.1 percent over the past year. (1)  Ex-fuel, import prices were flat in May and up 0.8 percent over the past year. Lower nonfuel industrial supplies and materials prices offset increases in autos and foods/feeds/beverages. (1)


Europe: After a period of stagnation, France is back in the ascendancy. Britain is isolated and on the skids, the result of a series of unforced political blunders. Germany is no longer alone in European leadership, meaning it could face pressure to make uncomfortable choices regarding the EU’s economic and defense policy after its September election. Spain, Portugal, and even Greece are seeing light at the end of the tunnel after years of economic and political turmoil. Italy is teetering between revival and disaster, but it may stay on the edge almost indefinitely. (2)


Asia:  Donald Trump has repeatedly promised to take on China and its trade practices. But according to a new study, it is US allies in Asia and Europe that are set to bear the burden of a new wave of US protectionism shaping up to be the largest seen in decades. (3)  The study released on Monday by a leading expert on trade disputes and protectionism comes as US Commerce Secretary Wilbur Ross hurries to deliver within days a plan to impose new restrictions on steel imports, arguing that the country’s national security is at stake. (3)


Latin America:  The United States pledges a strong commitment to Central America while urging those nations to help stop “illegal and dangerous migration,” defeat transnational drug cartels and gangs, as well as to end corruption. (4)  “This must end,” said U.S. Vice President Mike Pence on Thursday, “and this will end.” Pence said he plans to travel to Central and South America later this year. (4)  Every year, it is estimated that 500,000 people flee the Northern Triangle nations. The high level of violence in the Northern Triangle ranks alongside the world’s deadliest war zones and is the main driver of migration from this region, according to Doctors Without Borders. (4)


Monday 6/12

  • S. stock indexes slipped again Monday as technology companies, which were near record highs last week, suffered a second day of sharp losses. Investors are changing course and selling some of the best-performing stocks of the year while buying companies that have struggled. (5)


Tuesday 6/13

  • The China stock market bounced higher again on Tuesday, one session after halting the four-day winning streak in which it had advanced almost 70 points or 2.1 percent. The Shanghai Composite Index now rests just beneath the 3,155-point plateau and is expected to open in the green again on Wednesday. (6)


Wednesday 6/14

  • S. stocks dipped Wednesday as investors worried about weak retail sales and oil prices sank. The Federal Reserve raised interest rates for the third time in six months. (5)


Thursday 6/15

  • S. stocks fell Thursday as technology firms and small companies skidded. Investors bought high-dividend stocks, which pulled the market away from steeper losses. (5)


Friday 6/16

  • Amazon buying Whole Foods in move into brick and mortar. (5)
  • ISIS leader may have been killed in strike: Russia. (5)


Contributor: Thomas Padula




(1) Wells Fargo Economic Group

(2) Politico

(3) Financial Times

(4) Voice of America

(5) ABC News

(6) Nasdaq

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