Last week’s markets were driven primarily by GDP announcements and inflationary data. US quarterly gross domestic product increased by 1.40% according to the latest report from the Bureau of Economic Analysis. After more disappointing readings during the first and second estimates, the third estimate was enough to spur speculation that December would be next action on monetary policy barring any serious deterioration in fundamentals. In her semiannual testimony in front of Congress, Federal Reserve Chairwoman Janet Yellen insisted there was no “fixed timetable” for interest rates to rise, a comment echoed by other dovish policymakers. Aside from US GDP was the UK’s release of its own second quarter GDP which was upgraded to 0.70% from 0.60% prior, underscoring that Brexit has had a limited impact on fundamentals thus far. The energy market was volatile throughout the week, especially after OPEC members managed to walk away from the meeting in Algeria with an agreement to pursue an output ceiling. Although there is still no official deal, members will meet in Vienna during November to finalize any accord. Already certain members are balking at the agreement, creating tension that may derail any implementation.
US GDP Upgrade Barely Moves the Needle
Weekly Report - 02/10/2016