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Overview: Global stocks traded higher last week as two key events drove stocks higher and bond yields lower. First, the Federal Reserve indicated a willingness to cut the funds rate at future Fed meetings, and second, it was announced that Presidents Trump and Xi will have an extended meeting at the G20 (Group of 20) later this week. This willingness to talk between the two leaders was interpreted as a signal of a possible thaw in trade tensions, and the S&P 500 index was about 2% higher on the news. International developed stocks (MSCI EAFE) were up a similar amount, and emerging market equities led the way (MSCI EM), up almost 4% for the week. In bonds, the 2-year and 10-year Treasury yields declined by 16 and 7 basis points respectively, as the markets priced in lower-than-expected future short-term rates. In addition to the dovish Fed outlook, both the ECB and the Bank of Japan have reiterated their commitment to policy easing if necessary, another factor that helped drive stocks higher globally last week.

This week: Several important economic numbers will be released this week, including data on home sales, durable goods, trade and consumer spending. The highlight of the week will be the latest first-quarter GDP estimate, which is released on Thursday and expected to print at 3.1%. Later in the week, all eyes will be on the G20 summit meeting in Osaka, where world leaders will meet to discuss various economic issues as well as important side issues such as trade and the situation in Iran.

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. 8677841