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Overview: Market sentiment continued to be driven by trade commentary from the U.S. and China. Last week’s sanctions against the China tech company Huawei added an additional layer of complexity to the state of relations between the countries. Stocks fell, with the S&P 500 index down 1.1% for the week. Bonds rallied as market participants sought safety in U.S. Treasuries, with the 10-year Treasury trading at an 18-month low yield of 2.33%.

Trade in perspective: Trade headlines have been dominated by the U.S. – China situation, but for investors, there is a bigger picture. Specifically, progress is being made on the renegotiation of the North American Free Trade Agreement (NAFTA). Last month Mexico approved a labor reform bill, and the U.S. recently lifted tariffs on steel and aluminum from Mexico and Canada.

Looking forward: Election results are in from the weekend in the European Union, UK Prime Minister Teresa May has resigned, and Brexit remains unresolved. It will be an interesting summer, as governance and political direction of the European Union and member countries are at stake. The big picture focus in the U.S. will be on the budget and debt ceiling, both of which need to be resolved by the fall.

This communication is for informational purposes only. It is not intended as investment advice or an offer or solicitation for the purchase or sale of any financial instrument.

Indices are unmanaged, represent past performance, do not incur fees or expenses, and cannot be invested into directly. Past performance is no guarantee of future results. 8594489