2016 Closes With a Whimper

Financial markets faced very limited market data last week, contributing to the downturn in turnover and liquidity as investors squared their portfolios for year-end reporting requirements.  With investors largely refraining from taking extraordinary levels of risk, certain assets remained stuck in narrow ranges while others faced increased volatility thanks to less activity.  One of the biggest moves was the crash in the US dollar on Friday which saw the US currency falter against all major peers before recovering modestly, sending gold prices back above $1150 per troy ounce.  Oil prices exhibited fairly normal volatility, whipsawing after crude oil inventories surprising rose for another week despite expectations of a drawdown.  An uptick in natural gas seasonal demand thanks to colder than average temperatures across the United States sent the commodity to multi-year highs before pulling back modestly late in the week.  Meanwhile, equity futures continued their grind higher until the middle of the week, with European indices closing out 2016 near 1-year highs.  Although Nasdaq futures touched a new record, American equity benchmarks slid from Wednesday onwards through the end of the week as dollar profit-taking and risk aversion prevailed.