Market Action

• The Federal Reserve approved the capital plans of the 34 largest financial institutions in the U.S. The plans were the second half of the central bank’s annual stress test. The passing mark resulted in record increases in dividends and buybacks for some of the country’s largest and most influential banks. The results pushed Financials as the market leader this week.
• The final revision to Q1 GDP growth increased the quarter’s rate once again. The initial 0.7% print now stands at 1.4%. Estimates for Q2 stand at a 2.9% rate although those estimates have been coming down.
• The Euro gained more ground on the Dollar this week, rising another 2% on comments from Mario Draghi that signaled extraordinary stimulus measures were closer to the end of their lifespan. Bond yields across the Eurozone sold off this week on Mr. Draghi’s confidence that deflation was in the past.
• Oil prices rebounded after their fall over the last couple of weeks in what many onlookers are calling a relief rally. Industry executives and analysts still expect considerable supply to enter the market for the balance of the year and into 2018 with shale production continuing to grow and quick to come online.
• Online cyberattacks halted operations of some of the world’s largest corporations this week. An attack that started in Ukraine spread around the world and prevented Maersk from unloading cargo at India’s largest container port while also freezing operations at FedEx’s European operator, TNT.
• Italy committed to another bailout plan for two of its largest banks early this week. The government offered up to 17 billion Euros to Banca Popolare di Vecenza and Veneto Bana SpA.

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