April 2, 2018 – Weekly Market Commentary


Capitol Hill - weekly market commentary

Ana Swanson and Alan Rappeport – The New York Times
White House Looks to Use Emergency Law to Halt Chinese Investment

Summary: The Trump administration is preparing to use a 1977 law, the International Emergency Economic Powers Act, to limit Chinese investment in “sensitive American technology”. Lawmakers are concerned about investments made by Chinese state-controlled enterprises which allow the firms to take intellectual property from American companies and export it to China. China invested roughly $29 billion in the US in 2017.


UK Flag - weekly market commentary

Will Martin – Business Insider
Britain is The Only Major Economy Where Growth is Slowing

Summary: After growing 0.4% in the fourth quarter of 2017 Britain officially became the only G7 economy to slow down last year. Analysts cited Brexit-related uncertainty as a headwind to business and individual investment and the weakening pound increasing costs at the consumer level as the main reasons for the slowdown. 


Oil pump - weekly market commentary

Bloomberg News
Yuan Oil Futures to Start Trading

Summary: China officially listed local-currency crude oil futures last week. The country is now the largest oil importer in the world, buying over 8.4 million barrels per day. The exchange has been opened to foreign investors. China is hoping that the yuan can challenge the US dollar in international trade. 


Ticker Table - weekly market commentary

Reuters Staff
Saudi Arabia to Join FTSE Emerging Markets Index

Summary: FTSE Russell announced that it will add the Saudi Arabian stock market to its emerging market index starting in March of 2019. Because many equity funds benchmark their allocations against the Russell index, the changes are expected to bring in billions of dollars in foreign investment. Another popular index provider, MSCI, is expected to make a decision on including Saudi Arabia in its own EM index in June of this year. 


BlackRock Logo - Weekly Market Commentary

Jean Boivin, PhD – BlackRock
Hello Higher Economic Uncertainty

Summary: US fiscal stimulus measures and pending trade negotiations have expanded the potential economic outcomes this year. Risks have been heightened on both the upside and downside. Fiscal policy changes stand to benefit business spending which could boost productivity and contain an “overheating” economy. On the downside, protectionist trade policies would likely limit business investment, reduce business confidence, and slow global growth prospects. 


Charles Schwab Logo - Weekly Market Commentary

Liz Ann Sonders, Jeffrey Kleintop, Brad Sorensen – Charles Schwab
Navigating the Changing Market Environment

Summary: Markets were more sensitive to negative news and political rumblings during Q1 of this year. Ironically, the increase in volatility is a healthier investing environment which the Schwab team expects to keep the bull market alive for the time being. Valuations have retreated to more reasonable levels and earnings growth has met expectations. Volatility will likely remain elevated, but economic and earnings growth should continue to support the market going forward. 





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