Financial News and Portfolio Management Discussion through December 17th
US stocks were relatively flat over the week as the Fed’s projections on future interest rate increases weighed on markets. The S&P 500 edged down 0.1% and the Dow rose 0.4% for the week. Abroad, Europe gained 0.3% and Japan jumped 2.1% for the week. With the Fed announcement the 10 year Treasury yield ended at 2.60% its highest yield in more than two years. The US dollar hit a 14 year high on the news from the Fed meeting.
The Fed elected to increase the Fed Funds rate for the second time in a decade raising it a quarter point to between 0.50% to 0.75%. They also showed more optimism about the economy increasing the expected interest rate increases in 2017 from two to three.
China’s economy steadied in November posting solid numbers in retail sales and industrial production. With growth expected to be in line with its target.
China’s central bank extended hundreds of billions of Yuan to financial firms Friday in hopes of easing a liquidity crunch.
US housing starts fell 18.7% in November and remain at recessionary levels.
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