Economic Weakness: Is It Just the Weather?
Next week's data will provide some important clues.
Most developed equity markets performed in a narrow range of 1%-2% weekly price increases while emerging markets continued to soar, this week up by another 4%. Emerging markets are up about 8% over the past two weeks, as fears that the U.S. Federal Reserve would quickly raise rates greatly diminished after last week's soft employment report. More stimulus and easing measures out of China a couple of weeks ago continue to stimulate interest in China and other emerging markets.
The U.S. equity markets had two good days this week and nothing the rest of the week. Like emerging markets, U.S. stocks rallied sharply on Monday on the reduced possibility of a June rate increase. Then the market sat around until Friday when a potential spin-off of GE's (GE) financial division excited market participants. After a dip on Monday, the 10-year bond yield for the week rallied from 1.91% to 1.95%. Commodities also managed a small 0.8% increase as oil closed higher. Oil (WTI) was up 5% for the week to close over $51 on worries about the Iran nuclear deal being consummated.
Robert Johnson, CFA does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.