Weekly Market Commentary June 26, 2017

Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

The S&P 500 Index broke out to all-time highs on Monday, only to be dragged down by the fall in oil prices. Monday’s gains were large enough to overcome the rest of the week and major markets finished higher. The S&P 500, the MSCI All Country World Index, and the Bloomberg BarCap U.S. Bond Index all managed to rise 0.2%. Investors, concerned about the Federal Reserve raising rates too quickly, continue to push long-term bond rates lower.

Oil has declined more than 20% since mid-February, primarily due to the strong rebound in the U.S. shale oil drilling and production. U.S. crude oil production now stands at more than 9.3 million barrels a day, near the August 2015 high. The global supply glut continues to be a key concern.

Internationally, MSCI finally decided to include China’s A-shares in its emerging market index. The move validates the country’s recent attempts to build greater liquidity into its stock exchanges in. Previously, only Chinese companies listed in Hong Kong or non-Chinese exchangers were included in the index.

What are we reading?

Below are some areas of the market we paid particularly close attention to this week. For further information, we encourage our readers to follow the links:

Oil Prices Continue Decline, Sliding into Bear Market Territory

Crude oil is trading below $45 per barrel. Oil prices dropped on Wednesday and have failed to recover, amid continued concerns about oversupply. U.S. government data revealed a rise in domestic crude production, intensifying concerns over the glut of global supply even as domestic stockpiles fell for a second straight week. At the same time, drivers continue to consume less gasoline than expected. OPEC’s production cuts don’t appear to be significant enough to support prices.

From Music to Maps, How Apple’s iPhone Changed Business

Apple’s iPhone turned ten this week and the impact it has on our daily lives is massive. Phone calls have been replaced by a myriad of other options. Constant updates of social media and frequent selfies have upended industries. Digital camera sales fell 80% between 2010 and 2016. Music streaming has become the way young people listen to music and ride hailing firms like Uber and Lyft couldn’t exist without this technology.

China Blue Chips End at 18-month High, Buoyed by MSCI Inclusion

Chinese stocks hit an 18-month high following MSCI’s decision to include them in its global benchmark equity index for the first time, marking a milestone in the country’s efforts to draw international funds. MSCI’s move means mainland equities, known as A-shares, will be included in its flagship emerging markets index in the middle of next year. Their inclusion obliges the estimated $1.6tn of investment funds that track the index to buy the stocks.


Fun Story of the Week

Why is Your Wall Ringing?

Thirteen years ago Jerry Lynn dropped an alarm clock in a hole in his wall while using it to pinpoint the spot where he could run a wire for a television. This non-standard use of an alarm clock quickly came back to bite him when it fell behind the wall. Lynn assumed the battery would wear out after a few months. Instead, it continues to disturb guests and remind Lynn and his wife Sylvia what time it is thirteen years later.


 

 

Share:
facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.
Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

RECENT POSTS

Market Commentary: S&P Decline Continues While Consumer Demand Keeps Climbing

The S&P 500 continued its string of negative weeks, dropping 3% last week. It was the seventh straight weekly decline in the index of large-cap stocks. The S&P 500 temporarily fell more than 20% on Friday, but the market rallied and the index finished down 18.1% from its January all …

Market Commentary: S&P 500 Decline Continues, But Inflation Shows Signs of Leveling Off

Market volatility continues to make life challenging for investors. The S&P 500 declined for the sixth straight week, the longest streak since 2011. Six-week losing streaks used to be much more common. The S&P 500 declined at least six consecutive weeks six different times from 2000 to 2011.

Special Market Commentary: What’s Stressing Out Stocks? These Market Inflection Points

So far, 2022 is faring to have one of the worst ever starts for stock returns. Only 1932 and 1939 have proven to be more difficult through the first four calendar months. The reasons are numerous and front-of-mind for us all: an unexpected war in Ukraine, the lingering impacts of COVID-19, …

Market Commentary: U.S. and U.K. Central Banks Offer Contradictory Outlooks, Making for a Rollercoaster Market Week

Market volatility surged last week, although the end result for the S&P 500 was a decline of only 0.2%. Central banks were the main culprits for the volatility. On Wednesday, the Federal Reserve announced it would raise rates 0.5% and clarified plans on how it will shrink its balance sh …
1 2 3 66 67 68

Get in Touch

In just 15 minutes we can get to know your situation, then connect you with an advisor committed to helping you pursue true wealth.

Schedule a Consultation

TweetsFollow Us