The first trading week of 2017 picked up where 2016 ended. Markets continue to rally being led by cyclical sectors such as Technology and Consumer stocks.
While the unemployment report of 159,000 new jobs in December was below expectations, a 2.9% wage increase for the same month is the best rate since 2009.
Chinese monetary authorities tightened liquidity in the yuan this week to counter capital outflows and bets against the currency. The move was the most drastic act of support for the yuan since 2005, lifting the currency about 1% against the dollar.
India expects GDP growth to fall to 7.1% this year, down from 7.6% this year. The forecast is the first data point since the government’s decision to remove large bills out of circulation to fight illicit activity, creating a cash shortfall in the country.
Consumer prices jumped by the most in 4 years in the Eurozone according to data released this week. The release follows a theme seen in developed markets over the past few months of inflationary pressures picking up.
Retail shares saw substantial volatility towards the end of the week as stores such as Macys warned of lower profits this upcoming year. The industry has struggled to fight off the momentum of e-commerce trends.