Weekly Market Commentary





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Anna Fifield – The Washington Post
North Korea Detonates its Most Powerful Nuclear Device Yet
Summary: North Korea detonated a nuclear device which it claimed was a hydrogen bomb that could be attached to a missile capable of reaching the US. The test will likely escalate global tensions with the dictatorship. The US, South Korea, Japan, and China have all vowed to determine solutions to any potential threat. Markets sold-off slightly on the news. 

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Lucia Mutikani – Reuters
U.S. Second-Quarter GDP Growth Revised Up, Fastest in Over Two Years
Summary: US economic growth in Q2 was revised up to the fastest pace in over two years at 3%. The upward revision was driven by stronger consumer spending and business investment. Housing was a major drag on growth, but robust growth in the largest factor of GDP, consumer activity, is likely to carry over into a positive Q3.

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Joe Carroll and Thomas Black – Bloomberg
Harvey Recharges Offshore as Crippled Houston Counts the Cost

Summary: Predictions of the cost of damage caused by Hurricane Harvey are as high as $100 billion. As much as 30% of the nation’s refining power remains in jeopardy as flood waters slowly recede. Twenty-two ships holding a combined 15.3 million barrels of crude have been drifting off the coastline waiting for ports to reopen. Gasoline and crude oil prices have risen since the storm. 

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Jennifer Rankin – The Guardian
EU’s Brexit Negotiator Tells UK to Speed Up and ‘get serious’

Summary: The EU’s chief negotiator on Britain’s exit from the bloc is concerned about the progress of discussions. European leaders have unanimously agreed that the UK must make progress on the amount of financial settlement they will pay to exit the bloc, issues regarding the Irish border, and EU citizens’ rights before any discussion about a future relationship with the EU. 

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Paul Eitelman – Russell Investments
Quantitative Tightening Likely This Fall: What it Might Mean for Markets

Summary: The US Federal Reserve has made it clear that it is planning to wind down its balance sheet soon. Eitelman breaks down how the Fed may proceed with the challenging task, how tightening should affect interest rates, and what it means for the markets. The Fed is hoping that tightening actions remain in the background and have little effect on equities. The markets could pull back on any rise in rates because valuations will look increasingly expensive. 

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Liz Ann Sonders, Brad Sorensen, Jeffrey Kleintop – Charles Schwab
A Preview of Coming Attractions?

Summary: Volatility has ramped up heading into the traditionally-slow final weeks of summer. These recent bumps may indicate a more volatile fall for investors. Fiscal, monetary, and geopolitical uncertainties have the potential to cause a pullback in the markets, but strong support from the global economy should provide support to any downside moves.  


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