Financial News and Portfolio Management Discussion through September 5th
Global stocks sank over the week on continued concerns over China’s growth and uncertainty over the Fed’s next move. The S&P 500 descended 3.4% and the Dow dropped 3.3% for the week. Abroad, Japan plunged 7.0% and Europe fell 2.8% for the week. The 10 year Treasury yield fell over the week ending at 2.13%.
Employers added 173,000 employees in July, well below forecast and a slowdown from the recent pace. However, June and July were revised upwards by 44,000 jobs. The unemployment rate dropped from 5.3% to 5.1% its lowest level since 2008.
US factory activity grew at its slowest pace in over two years in August.
US construction spending hit its highest level since 2008 in July.
US auto sales rose to the fastest pace in 10 years at an annual rate of 17.8 million vehicles.
China imposed capital controls in an effort to keep more money in the country as it attempts to battle its slowing economy. The efforts are designed to help prop up the yuan’s value to keep investors from wanting to move cash outside the country.
China posted a weak reading on its manufacturing sector.
South Korea showed a 14.7% decline in exports in August displaying the impact of China’s currency devaluation.
ECB president Draghi made statements that the bank was prepared to extend the ECB’s bond buying program past its current projected end date of September 2016.
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