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Mid-Week Market Minute 01.03.20

News |

Stock markets around the globe continued to rally and build on gains from 2019 in the first week of 2020. Markets were encouraged this week by new monetary stimulus from China’s central bank to support its economy. In addition, positive signs from an improving global growth outlook, expectations of a trade deal, and accommodative monetary policy by central banks around the world has improved sentiment. After a stellar 2019 across both stocks and bonds, focus now shifts to the year ahead. Investors will be watching developments in impeachment proceedings and U.S. presidential elections later in the year. Markets are also monitoring geopolitical tensions, including recent news from North Korea and Iraq. In North Korea, Kim Jong Un has said he was no longer bound by his pledge to halt major missile tests. In Baghdad, attacks on the U.S. Embassy raised fears of a broader confrontation. On the interest rate front, the Federal Reserve has signaled its intention to keep interest rates stable, and yields have traded in a narrow range the past few months. We start the new year with the fed funds rate at a range of 1.50-1.75%, the 2-year Treasury at 1.58%, and the 10-year Treasury at 1.92%.

Sources: Bloomberg, Reuters

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.