Market Action

• U.S. stocks performed poorly this week as all sectors sustained losses. Poor economic data, led by a revision for Q1 GDP to -0.7%, contributed to the selloff on Friday but equities still remain within a tight range.
• Japan’s Nikkei hit a 15-year high on Tuesday and continued marching higher to close the week. Confident remarks from Central Bank Governor Kuroda on the potency of monetary policy, promising employment data, and the Yen reaching new lows boosted Japanese stocks.
• Elsewhere in Asia, China saw one of its most violent declines on Thursday. The Shanghai markets suffered losses of over 6.5% as margin rules were tightened again to guard against speculative activity.
• China also announced new procedures to open up its capital account this week. Regulations dictating who can send capital out of the country for investment purposes and in what amount will be lightened.
• European markets also saw heavy losses during the week. Greece’s drama with its creditors continues as officials warn that a June 5^th payment to the IMF will be missed. Greece has the right to request a bundling of payments due in June to the Fund according to Christine Lagarde who later admitted that a Grexit is increasingly possible.
• The dollar continues to show signs of strength after its recent fall. The greenback broke to new highs against the Yen this week.
• Oil prices remain around the $60 and $65 level for WTI and Brent respectively. Chatter has picked up from key analysts and institutions that the market remains in an oversupplied condition.
• Thanks to the volatility in equities globally, as well as poor economic data, bond yields, for both sovereign and corporate issuers, fell considerably this week.

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