Market Action

• The Dow Jones has hit 11 consecutive closing highs, a streak that hasn’t been seen since 1987. Plans for tax reform this summer and higher GDP growth goals from the administration have helped fuel the rally.
• A number of economic indicators buoyed optimism in Europe. German business sentiment, U.K. Q4 GDP and Eurozone inflation all met or surpassed expectations, pushing attention to the ECB and a potential tightening of policy.
• President Trump has requested officials to look into a new way for trade deficits to be calculated according to the Wall St. Journal. The formula exacerbates trade deficits with key countries, including Mexico and China, by adjusting for goods imported and then re-exported.
• The IMF publicly stated that Greece needs further structural reforms before additional financial assistance can be provided. The country is in need of an additional tranche of funds before the end of Q3 and the IMF has traditionally been a conciliatory party compared to Eurozone leaders.
• Outstanding credit has begun to contract in Brazil, an additional sign of the macroeconomic pressures gripping the country. Interest rates on short-term debt are at their lowest point in years.
• Existing home sales in the U.S. surpassed expectations and hit their highest point in over a decade according to data published this week. The mortgage market remains tight however with the vast majority of loans going to borrowers with the best credit scores.

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