The end of the 3rd week of 2018 finds the US market’s performance on the best track since 2003. The S&P 500 made already 5% in 2018 alone. The 4th quarter earnings reports are beating even the most optimistic expectations. Out of all the companies that have reported their earnings as of now, 89% have outperformed. On the other hand the US government came to a halt as the republicans did not find support on temporarily extending the funding to the government for another 30 days. The government shutdown can bring some shocks on the charts as of Monday.
US stocks shrugged off a possible US government shutdown to close at record highs as ongoing optimism over earnings spurred investor appetite for riskier assets. The S&P 500 closed at a record high on Friday.
Financials got the week off to a good start amid quarterly earnings report from Morgan Stanley (NYSE:MS) and Bank of America (NYSE:BAC) that beat Wall Street estimates, while Goldman Sachs (NYSE:GS) reporting its first quarterly loss since 2011.
Among the commodities Crude Oil snapped a 4-Week Winning Streak. The weekly gains in crude oil prices were not expected to end this week as investors weighed the impact of rising US production on OPEC’s efforts to rid the market of excess supplies amid comments from the IEA. Crude oil futures settled at $61.44, down 58 cents.
Among the currencies, it was another miserable week for the dollar as the US administration is under the radar. GBP/USD rose to its highest level since the June 2016 Brexit vote amid growing expectations that the Bank of England would soon have to raise rates as inflation is above 3% target and has to prevent the economy from overheating. EUR/USD had a fifth-straight weekly win, rising above four-year highs. While the US dollar keeps losing, Gold prices held above four-month highs.
Trump and Central Banks Pave the Way for the Future of Global Growth
Weekly Report - 22/01/2018