Weekly Market Summary 10.2.2017 by Capital Investment Brokers - CIBFX
Nothing really changed much during the trading week, as stocks closed flatly from last week’s performance of the US market. The rest of the major global markets performed well, gaining in comparison to last week, except for the slightly lower figures for the Asian market.
US Stocks Closed, Slightly Unchanged
US stocks underperformed during the week despite good news coming in from the employment and manufacturing reports. President Trump’s immigration ban sparked different sentiments, which could be identified as a factor causing the sluggish performance of the US stocks. It should also be noted that despite the release of favorable Q4 earnings reports, some companies have no assurance that their related stock prices hiked their values. The US Fed kept monetary policies unchanged.
Dow Jones closed at 20,071.46, down by 22.32 (-0.11%), while NASDAQ closed at 5,666.77, up by 5.98 (+0.11%). S&P 500 and Russell 2000 performed slightly well, closing at 2,297.42, up by 2.73 (0.12%) and 1,377.84, up by 7.13 (+0.52%).
Oil closed at $53.84 per barrel (+1.3%) while gold did at 1,221.60, on a down (+0.18%) compared to last week.
European Market Poses Weak but Improving Gains
The European market seems to perform well this week. Financial sectors within the European region aim for more lax banking and fiscal regulations to boost their economies. On other good news, the Eurozone report of GDP improved by 1.7% for the year 2016, surpassing the 1.6% rate of the US. It would be attributed to a 1.8% increase in consumer prices, with oil prices getting back on track. Another would be a seven-year record streak of low unemployment rate for the year. Greece is back on the spotlight again with the IMF predicting an “explosive” effect of the country’s debt by 2030. The country should be doing everything right now, as many analysts are concerned that a potential financial crisis may happen in the zone. The UK has voted to initiate the start of the Brexit process, with the deadline looming on March 31.
Stoxx Europe 600 closed at 364.07, up by 0.59%; Europe DOW at 1,610.02, up by 0.15%; and FTSE 100 at 7,188.30, up by 0.67%.
Asian Market Improves
The Japanese market closed lower, compared to last week at 18,918.20. The Bank of Japan is performing measures reassuringly to yield curve control. The yen to US Dollar trading closed at 113 yen per dollar, which marks an improvement against the 117 Yen to the dollar last year. In relation to this, the Bank of Japan still decided to keep the bank’s policy unchanged. The interest rate is still at -0.1%. The move is backed by the bank’s belief of a stronger economic return until March 2019, adding to the unpredictability of deflation. On other Asian markets, China opens the year 2017 disappointingly in comparison to last year in terms of manufacturing figure reports. Although the country is performing well, the Chinese Central Bank’s implementation of stricter fiscal policies slows down the economic movement of its business activities.
As an investor, the following should be duly noted and taken into consideration for long-term investing:
- Adjustments should be given room. Policies and new measures to be implemented among fiscal agencies and monetary authorities would bring volatility and uncertainty in the global market. These would either uphold or take down existing improvements and create newer imbalance in trading.
- Focus on a diversified portfolio. Rallying stocks get a record high every now and then. Therefore, putting a portfolio in a position that would reap long-term viability is the best tactic to take advantage of on such rallies. Balance the portfolio by determining which of the assets are underperforming. and adjust it by placing more of the performing ones.
- Portfolio balance is important. Uncertainty, market volatility, and drastic economic measures would affect a portfolio any time of the day. Getting a balanced structure of equity and fixed-income class of assets would certainly make a viable investment account stand for a longer term.