Market Action

  • The dollar fell against a number of currencies on Thursday, particularly the Yen and Yuan, as President Trump declared China to not be a currency manipulator and that he believed the dollar was too strong. In addition, the President declared that he preferred a low interest-rate policy, a reversal from prior statements.
  • Oil prices rose on the week thanks to a falling dollar as well as a Libyan oil field being taken off production as a militia voiced a protest over unpaid wages. Also this week the IEA lowered its forecast for oil demand this year to lower economic growth.
  • Earnings season for Q1 2017 has begun with major financials kicking things off with results so far surpassing expectations. Earnings are expected to grow 9.2% this quarter over the prior year.
  • With equities selling off across the globe bond yields fell to their lowest levels in weeks. Geopolitical tension in Syria and the Korean peninsula, combined with dovish commentary from President Trump sent capital towards safe haven assets.
  • Iron ore prices have fallen into bear market territory as producers in Australia are citing weak demand from China as the culprit. Chinese PPI and CPI prices also fell over previous readings, suggesting demand is slipping.
  • French bonds are trading at near multi-year lows relative to German benchmark bonds in a volatile week of trading. Increased political tensions with the upcoming elections have caused investors to opt for other safe haven assets.

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