Market Action

• The U.S. and China stuck an agreement on a 10 point trade package on Friday centered around good and services such as beef, poultry, natural gas, financial services and biotechnology. Commerce Secretary Wilbur Ross touts the deal as a means to reducing the country’s trade deficit with Beijing.
• Germany’s GDP growth came in at 0.6% for Q1, the strongest growth rate among the G7 economies. Germany’s growth has picked up steam over the past few months thanks to rising foreign demand for industrial products
• China’s yield curve inverted over the intermediate portion of the curve late this week. China’s bonds and stock markets have struggled in recent weeks due to monetary tightening, rising debt defaults, and concerns over the future viability of Wealth Management Products that have promulgated credit growth throughout the country.
• The CBOE Volatility Index fell to a 24-year low this week. The “Fear Index” has captured the attention of the financial press and major investors this week on the concern that complacency is gripping financial markets.
• With more than 90% of S&P 500 companies having reported first-quarter results earnings have grown over 13% compared to this period last year, the fastest rate in multiple years.
• Energy prices rose over 3% this week, thanks to the biggest drop in inventories of 2017 but crude is still down over 10% this year on resilient shale supplies.

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