*Prior commentary is available upon request*

Macroeconomic Market Report

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Eurozone:

  • European markets have improved in accordance with U.S. markets since late December.

    • The possibility of a U.S. trade deal with China has helped lift shares.

China Tariffs:

  • Trump extended the deadline for tariffs that were originally scheduled to be put in place on the first of March.

    • Trade tensions between the U.S. and China seem to be cooling as both sides have a lot to gain in the event of a deal being made.

    • China has shown signs of an economic slowdown which will put pressure on President Xi Jinping to cut a deal with Trump. 

Crude Oil:

  • In the last week of February crude oil inventories in the U.S. decreased by 8.6 million barrels to 445.9 million. 

    • This bullish report has contributed to the upward trend in the price of WTI crude. 

    • The United States is continuing their reign as the leader in global oil production.

    • Energy companies’ shares have been improving in accordance with the price of WTI crude oil.Political & Trade Uncertainty

This chart shows the Federal Funds rate since February of 2011.  The Federal Reserve has shown dovish signals in their latest FOMC meeting indicating that there might be a policy change regarding interest rates.  The Federal Reserve has projected that they will hike rates twice in 2019 instead of their earlier projection of three rate hikes.

This chart shows the Federal Funds rate since February of 2011.

The Federal Reserve has shown dovish signals in their latest FOMC meeting indicating that there might be a policy change regarding interest rates.

The Federal Reserve has projected that they will hike rates twice in 2019 instead of their earlier projection of three rate hikes.

This chart shows the CBOE volatility index since December 22, 2018.  Since the December market rout volatility has been quelled by easing trade tensions and the passage of a U.S. government spending bill that re-opened the federal government.

This chart shows the CBOE volatility index since December 22, 2018.

Since the December market rout volatility has been quelled by easing trade tensions and the passage of a U.S. government spending bill that re-opened the federal government.