Market Action

• Markets recovered some of their losses from last week as the Nasdaq approaches an all-time high thanks to Apple’s resurgence in the midst of iPhone 7 demand.
• Median household income rose at the greatest rate in nearly a generation according to data released this week. The 5.2% gain in income boosted stocks and bond yields higher. The figure still stand slightly below 2007 highs but is some of the strongest data since the Financial Crisis.
• Russia cut interest rates by 50 basis points this week. Crude’s fall over the past couple of years has sparked capital flight and a weaker ruble, pushing up prices and forcing the central bank to tighten. Inflationary pressures have abated in recent months.
• Greece informed its creditors that it cannot comply with demands to eliminate collective negotiations on wages and conditions, jeopardizing the next tranche of its €86 billion bailout.
• Chinese data continues to come in mixed overall but the economy does appear to be avoiding a hard landing so far. Industrial output, retail sales and fixed asset investment all improved relative to expectations.
• Oil demand growth continues to slow according to the International Energy Agency. The group downgraded its forecast for demand growth for the balance of 2016, following the EIA last week.
• UK economic data continues to show some resilience but markets continue to expect a rate cut in the near future, sending the Pound lower on the week.

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