Most equity markets were down last week with the Dow, the SP500 and the NASDAQ losing steam and the MWXO World index ending marginally lower. Some profit taking took place in Asia and Japan succumbed to the sharp rise in the value of the Japanese Yen, losing 2.5 % in value. Europe was stabler with the German Dax being one of the very few markets closing up on the week. Brazil and Vietnam were the best performers while Japan was the worst.
Earlier this year, the Dow recorded its lowest one-month trading range since 1900, and last summer the S&P traded within a 1.77% range for 42 consecutive days, the tightest such streak in history (the lull was ultimately broken on 9-Sep-16, when the S&P 500 dropped 2.45% on ECB policy, North Korea, and a fear of higher rates in the US).
Investors in United Arab Emirates construction stocks can remember the good days — when oil above $100 a barrel encouraged a seemingly endless stream of lucrative projects. Now, with crude priced at half that, companies are trying to rebuild their balance sheets.
Two of Wall Street’s most influential CEOs — Larry Fink and Jamie Damon — are raising warning flags over the nation’s economy.
Blackrock’s Fink said Thursday that U.S. growth is slowing on concern whether the Trump administration’s agenda will get through Congress. Dimon lamented that “it is clear that something is wrong” with the nation in a letter to investors Tuesday. Both CEOs are part of a group of business leaders that advise President Donald Trump.
U.S. markets are at their highest risk levels since before the 2008 financial crisis because investors are paying a high price for the chances they’re taking, according to Bill Gross, manager of the $2 billion Janus Henderson Global Unconstrained Bond Fund.
Bank of China Ltd., the nation’s fourth- largest lender, posted a 23 percent surge in second-quarter profit after curbing bad loans and expanding its lending margin.
Net income for the three months through June rose to 57.04 billion yuan ($8.7 billion) from 46.42 billion yuan a year earlier, according to quarterly figures derived from first-half earnings Bank of China reported to Hong Kong’s exchange last week.
Strong US employment and factory orders and great earnings fromm Apple Inc. led global stocks to new all-time highs last week.
The rally was paced by Hong Kong Listed Chinese shares up 2.30% and by Hong Kong Stocks.
As 1Q17 finishes with a gain in the books, the stock to bond performance ratio has also broken to a new cycle high, elevating to levels not seen since mid-2007.
The measure of the stock to bond ratio measures the total return of the S&P 500 relative to that of the JPM 10 year treasury total return index. When the blue line rises, stocks are outperforming bonds, and vice versa.
All three American equity indexes rose to new all-time highs last week in a sign of relief with the nomination of Jerome POWELL to succeed Janet YELLEn at the helm of the FED and the subdued employment numbers that came out on Friday.
After a flurry of bad news in the past two years, we are of the view that it is time to BUY Volkswagen again at the current EUR 132 level.
VOW has been badly affected by the diesel emission scandal, recalls in the US and China and still has an anti-trust suspicion investigated by the European commission lingering over its head.
The european Commission probe centers on potential anti-trust breaches regarding collusion by German automakers on various technologies, including diesel emission controls. MAN trucks were part of a 2.9 Billion Euro fine for acting as a cartel.