The US market was lifted this past week from easing of US-Iran tensions and Chinese delegation making its way to Washington next week to sign the Phase 1 trade deal. New record highs in the US markets were driven by subsiding bad news from Iranian and US airstrikes. This creates somewhat of a false sense of market highs based on created bad news turning into good news. Earlier in the week oil and gold prices made progressive waves to the upside off the tension increases and quickly dissipated as tensions eased.
The gold market rose to highs it hadn’t seen in 7-years through $1600 and then eased off about $50 into the end of the week while oil dropped about 10% within hours of tensions easing after breaking into $65.50. As investors set aside their fears¸ government bond yields in both Canada and the U.S. erased most of last week’s drop. Stocks got an additional boost when China said Vice Premier Liu He would visit the U.S. next week for the trade deal signing.
Overseas equity markets rose, but not many made all-time highs like the US markets. Good data came out of Europe in terms of PMI data and retail sales. Germany’s DAX was one of the best performers of the week out of Europe. The DAX was boosted by strong German industrial production data. While equities in both Spain and the UK dropped. Japanese stocks made gains even though data was muted and the economic outlook was hindered.
Here is a look at last week’s stock market on a daily basis (red vertical lines split days).
Stock Market and Sector Overview
Here is a break down of the weekly performance in various stock market sectors (top chart):
- Energy -1.19%
- Technology +2.95%
- Financials +0.67%
- Retail -0.02%
- Utilities +0.48%
Overview of key markets last week (bottom chart):
- Crude Oil -6.02%
- S&P500 +0.89%
- Silver +0.22%
- Gold +0.66%
- US dollar +0.48%
Weekly Economic Calendar
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