Market Action

• Spanish GDP accelerated at its fastest rate in two years during the past quarter. Spain’s economy grew over 3% over the past year according to recent data released. The accelerated growth and continued fiscal consolidation led to S&P and Fitch both citing a positive outlook to the country’s debt situation.
• S. GDP came in at 2.6% for the second quarter of 2017, slightly missing the 2.7% estimate but still strong nonetheless. Growth was lifted by consumer spending of 2.8% and business investment of over 5%, offset by a decline in housing investment.
• Crude oil gained over 8% this week as Saudi Arabia announced they would limit exports in an effort to lift global prices. Ecuador, Venezuela and Nigeria, among others, have not fully complied with cuts out of a desperate need for cash while Saudi Arabia hopes a higher price can elevate the valuation of a future IPO for its state-owned energy firm.
• The U.S. dollar is at its lowest point in over a year and is on the precipice of erasing all of its gains since 2014. As Europe’s economy continues to gather steam and signs of potentially marginally tighter approach, the Euro gains ground on the greenback.
• The U.K.’s Financial Conduct Authority has announced plans to phase out the use of LIBOR as a mechanism for pricing trillions of dollars’ worth of loans around the world. The rate has been plagued by scandal after bankers were found to be fixing the rate to boost profitability.
• Moody’s announced that they no longer possess a negative outlook for China’s financial system. The rating agency raised its outlook to “stable” for the sector stating that it believes the government has adequately coordinated effective policy measures.

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