US markets moved into record territory this week as Phase 1 of the trade deal was signed by the US and China. Officials from both nations agreed to move on with the discussion and doing so more regularly in the future. The US took a big step forward, reversing the designation of China as a currency manipulator.

Economic data continued to improve throughout the week which helped US equities continue their all-time high rally. In other trade news, the USMCA between US-Mexico-Canada was discussed and is soon to come. The earnings season kicked off this week as well, and that helped the upside. If earnings continue to beat overall then equities will see another wave of bullishness. The US big banks saw beats.

The manufacturing sector was struggling slightly last year but seems to have started growing again adding to the upside. The Empire State Manufacturing Survey and the Philadephia Fed survey are high impact reports and both rose more than expected.  Especially encouraging were signs that the manufacturing sector, which had been struggling much of last year, is maybe growing again. Retail sales continued to move higher and initial unemployment claims pressed lower. Homebuyer demand has increased due to low rates and strong employment figures, it rose to its highest level in 11 years and housing starts rallied to their highest level in 13 years.

Here is a look at last week’s stock market on a daily basis (red vertical lines split days).

stock market daily basis

Stock Market and Sector Overview

Here is a break down of the weekly performance in various stock market sectors (top chart):

  • Energy  -0.94%
  • Technology +2.45%
  • Financials  +1.14%
  • Retail  +2.18%
  • Utilities  +3.44%

Overview of key markets last week (bottom chart):

  • Crude Oil -0.78%
  • S&P500  +1.84%
  • Silver  -0.41%
  • Gold  -0.31%
  • US dollar +0.26%

Weekly Economic Calendar

Image: TradingView

Weekly Economic Calendar

A heavy week ahead in terms of economic news with Central bank speakers from all over the world. A lot of the US news could move equity markets and we’ll see what the bears are made of.
Monday, Holiday in the US, BOJ outlook report and monetary policy statement out of Japan.
Tuesday, no high impact news.
Wednesday, Canadian CPI, BOC monetary policy report, BOC rate statement, overnight rate, and BOC press conference. Followed by Australian employment figures.
Thursday, European main refinancing rate, monetary policy statement and ECB press conference right at US market open. Keep an eye out because this could move markets. Followed by New Zealand CPI data.
Friday, Frech, UK and Germany flash services PMI, UK and German flash manufacturing PMI, Canadian retail sales.

 

flash manufacturing

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