US equities managed to break out into all-time highs while volume slowed to the move higher. Trade talks were the center of a lot of the news this week that had influence on this upside. Reports of US and China discussing tariff rollbacks in a gateway to signing Phase 1 of the deal helped a lot of the upside this week. Treasury yields popped higher this week as risk-on trades poured money into the equities, treasuries managed to hit levels that have not been seen since the summer. Heavy sovereign supply in both Europe and the US exacerbated the aggressive move up in rates. Rising rates and steepening yield curves helped financials assume a leadership role.
The mixed signals were ever-present, on Friday President Trump disregarded all of the previous talks that were announced this week in terms of tariff rollbacks. The slight downside in oil this was quickly brought back up into the close of the year. To add to the upside and positive talks in the trade deal, the Yuan dropped too due to the risk-on flows . Crude and copper prices drifted lower along with the Yuan as some of the risk-on flows strengthening off-trade optimism. Gold may have been the loser of the week dropping below $1500 and $1480 where the sell stops lied. The Dollar index crept higher, approaching potential resistance at the 50-day moving average. For the week, the S&P gained 0.8%, the DJIA added 1.2%, and the Nasdaq rose 1.1%.
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 +0.88%
- Technology +0.95%
- Financials +1.67%
- Retail +0.95%
- Utilities -3.32%
Overview of key markets last week (bottom chart):
- Crude +6.04%
- S&P500 +1.77%
- Silver -7.37%
- Gold -3.71%
- US dollar -1.08%
Weekly Economic Calendar
Lighter high impact week in terms of economic news this week. The main event that pops out is Fed Chair Powell coming on to testify on Wednesday, November 13th.
Monday, China new loans. UK Prelim GDP number and New Zealand Inflation expectations.
Tuesday, wage price index out of Australia. Then New Zealand takes over the rest of the week with its rate statement.
Wednesday, CPI data out of the UK and the US. Fed Chair Powell speaks and Employment numbers out of Australia.
Thursday, retail sales out of the UK then Fed chair Powell testifies again. Poloz out of Canada speaks.
Friday, Retail numbers out of the US.
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