Financial News and Portfolio Management Discussion through January 3rd
US Stocks finished the week down on global economic concerns. The S&P 500 sank 1.5% and the Dow fell 1.2% for the week. Internationally Europe was down 0.7% and Japan dropped 2.1% for the week. The yield on the 10 year Treasury bond dropped to 2.12% near the lows of 2014 hit in mid December. Oil continued its fall finishing the week at $52.69 a barrel.
The dollar moved to its highest level in 11 years against major currencies as investors believe the US the economy to be a better bet than most of the world.
The ISM manufacturing activity survey showed expansion in the US, but fell short of expectations.
Eurozone manufacturing growth was revised down for December and China’s manufacturing index fell to its lowest level in a year and a half.
China is relaxing lending standards in hopes of spurring growth. The move is estimated to be the equivalent of $242 billion injected into the banking system.
Japan approved a $29.2 billion stimulus package in hopes of stoking growth.
A parliamentary vote to elect a president failed in Greece meaning that national elections will be held. Those leading in the polls are against the current austerity measures that are required by the country’s rescuers, thus throws the country’s rescue into question.
The S&P/Case-Shiller home price index showed October home prices rose 4.6% from a year earlier down from September and the double-digit growth pace at the end of the first quarter.
Reposted from the Raffa Wealth Management Blog.
All the news you need to stay informed about what’s currently driving the market – courtesy of Raffa Wealth Management, LLC