For the second straight week U.S. equities markets posted robust returns though they remain down on the year so far. Yields on benchmark bonds also remain stubbornly low, indicating confidence is still lacking over future equity returns.
The British pound saw a sharp decline over the past week over uncertainty on the ramifications of a Brexit. The fall accelerated on Monday after London’s mayor, Boris Johnson, spoke up in favor of leaving the European Union.
U.S. GDP for the fourth quarter of 2015 was revised up to 1% growth from the initial release of 0.7%. Markets had been expecting deterioration in the figure to around 0.4%. Economists provided caution however that a growth in inventories accounted for most of the revision and spells trouble for Q1 2016.
Argentina and holdout creditors are inching closer to a deal that will see the latter receive approximately 70% of what they are owed. An agreement would represent a quick reversal of relations between the country and markets, allowing Argentina to raise capital more easily moving forward.
Corporate America delivered its weakest earnings growth since the financial crisis in 2015 according to preliminary reports. Earnings posted either a small gain over 2014 or a decline depending on which measurement system is utilized.
Data out of Germany this week prompted additional concerns about the Eurozone’s strongest economy. Business sentiment continues to fall and GDP growth seems to be stalling despite more aggressive monetary policy.
China announced a reshuffling of a top securities leader early this week. Xiao Gang, who oversaw the failure of China’s circuit breaker and a $5 trillion meltdown, is being replaced as China tries to stabilize its market infrastructure and project confidence.