As our nation and the world continue to watch the actions and react to the rhetoric of the new Administration in Washington, we have already witnessed some incredible activity.
From the resignation of National Security Advisor Michael Flynn to Kim Jong Un’s missile launch, we are witnessing daily tests – both domestic and global.
How is this influencing the markets?
- Emerging market (EM) assets outperformed, U.S. Treasury yields fell sharply during the last week of January, and U.S. value stocks underperformed a flat market.
- Political uncertainty sent French and Italian government bond yields to multi-year highs relative to their German peers. Half of the European firms that have reported earnings have beaten estimates.
- Oil fell to a near three-week low under the pressure of growing U.S. crude inventories, but pared some losses. China’s PMI data showed expansion in both services and manufacturing sectors.
And what might be coming?Read More