Market Summary 10.03.2017

This weekly recap would be on a different side of the narrative compared to past articles. This week, it would be focused more on the things an investor should really know and consider. For a quick recap on the highlight during the past trading week, US stocks still continue its record high registry where the market was really optimistic.

The US Market Continues Gain Streak:

Optimistic data on the country’s economy drive the positive sentiment of most investors. Now that politics is again taking recognition and becoming a major a factor consideration in the market watch, the world would still follow any development as to how these short term gains would translate in the long run.

Stock Index Closing Change from Last Week % Change
Dow Jones 21, 005.71 183.95 +0.88%
NASDAQ   5, 870.75   25.45 +0.44%
S&P 500   2, 383.12     1.20 +0.67%
Russell 2000   1, 394.13   -0.40 -0.03%

 

Others Closing Change from Last Week % Change
Oil        53.01 -0.31 -0.58%
Gold 1, 232.50  5.90 +0.49%
EUR/USD           1.0590 -0.0033 -0.31%
USD/JPY      113.78 -0.24 -0.20%


Europe Sees a Positive Week Coming:

The export and import industry of the zone contributes to the positive gains during the trading week. In other news, Germany reached its highest level of inflation, which resulted in pressure on the country’s bonds.

Stock Index Closing Change from Last Week % Change
UK FTSE 100 7, 374.26 121.26 +1.67%
Stoxx Europe 600     375.23   5.71 +1.54%
Europe Dow 1, 621.06 +24.08 +1.55%


The Asian Market is slowly recovering:

China is looking forward to a solid contribution from its manufacturing and services industry. Economic policies would be laid out the coming week. Based on the last economic data, the country would be able to sustain a strong start and footing to be able to curb any financial risk and uncertainty. Japan, on the other hand, has enough income growth that would be able to counter the inflation. Meanwhile, the Bank of Japan is monitoring the implemented low rates as it hits the profit of financial institutions.

Stock Index Closing Change from Last Week % Change
Nikkei 225 19, 469.17 185.63 +0.96%
Shanghai Composite   3, 218.31  -35.12 -1.07%


An Investor’s Guide:

Remember to practice cleaning and de-cluttering in sifting through any financial advice and what the media reports. Sometimes, scratching only the surface could not provide definite satisfaction in terms of the answers and predictions an investor would really want to know. Currently, there is a lot of noise, gossip, and speculation, which in the end, just do not add up or worse, lead to bad decisions.

For an investor to easily assess some worthy news for business consideration, look out for these tips:

  • Global Economic News as a whole. The effect of certain news, especially when it comes to trade agreements, restrictions, and open policies does not purport to a specific area but to an interconnection of economic flow of value and importance. In the event that an influential market suddenly declares a certain policy that would affect the global economy as a whole, then investors should be wary and cautious as to their next move and decision.
  • Policies that are uncertain. Since the US is implying protectionism, the dice is rolling all over the market, which is affected by such restrictions (i.e. Mexico). When a certain policy takes effect, the world would surely implore fiscal measures and policies that would curb any negative impact on the country as a whole.
  • Focus on the real news and not the senseless noise. Always stay focused and diversified, as most financial advisors would say. With a lot of things going on, filter the news that matter and do not feed the hype. Always keep an eye on long-term investments and not on short-run gains. Rebalance the risk based on the investor’s appetite and remember to be cautious about every decision on the portfolio.