Weekly Market Review 11.1.2017

The January 3 to January 7, 2017 trading comes to a higher close after the dismal figures last week. Dow Jones is still on a hold up to reach the 20K mark. Federal Reserve is still evaluating the forthcoming reports, performance, and sustainability–whether the economy could pursue a three percent-interest hike for the year in short terms. US December reports fuel the positive prediction and sentimentality over the US economy. US payroll reports prove to hold up and improve over time, where an annual rise in wages is expected and factored in. A staggering 17.55 million vehicles, including light trucks, were sold in the year 2016, compared to 17.48 million last 2015.

On the global market news, the overall global market performance ended on few highs and gains. The highlight went to China where financial resources were continuously outflowing. This led to the Chinese government optioning an 80% increase in deposit rates for the country’s offshore deposit rates. The said overnight move is not enough to maintain a market rally where it just goes back in until Friday. That is why more capital controls are implemented on countries where foreign currencies owned by state-owned businesses are encouraged to sell The move is all for the stabilization of the currency while awaiting the effect of Donald Trump’s inauguration on January 20.

To continue the global scale of market performance with regards to growth, manufacturing and capital-related activities have contributed to positive results by year-end. The US continues its positive streak as to manufacturing reports, resulting in measurable growth, which is 54.7, compared to 53.2 last month. UK’s Brexit for this year does not at all affect its PMI, which still manages to post a 56.1 figure, a lead in comparison to the last 2 ½ years.

On other news worth noting, the US retailing industry suffered during the holidays, with more consumers relying on internet-shopping. This led to most Macy’s and Sear’s square-footage decreasing, as more stores are closing and owned brands are being sold. For instance, Craftsman, Sears’ own brand, was sold for $900 million to Stanley Black & Decker.

Stock Market Closing Week

Dow Jones closed at 19,963.80, up by 1%, while NASDAQ is at 5,521.06, up by 2.6%. The same goes for S&P and Russell 2000, which followed suit, posting a 2,276.98, +1.7%, and 1,367.15, +0.7%, respectively. The gain is attributed to positive sentiments from various US reports and the anticipation of Trump’s economy-focused presidency. Nikkei 225 still struggles with a close of 19,454.33, down by 0.34%, while FTSE 100 gained. with a close of 7,210.05; +0.20%.

The EUR/USD ended with 1.0533; -(0.0074) while the USD/Yen slightly recovered to 116.99; +1.64.

Oil closed at 53.70, down by 0.11%; the same as gold, which posted 56.75, down by 0.71%.

What’s next for the entire 2017?

For an investor, always know your long-term goals, as short- term events would either disrupt your plans or they can create more opportunities and lead to better decisions. The risk that comes with it should be within the accepted limit and the expected loss during any negative volatility. Always talk to the financial advisors, as they are the right personnel to give sound advice, aside from an investor’s own preference and risk appetite. Even stock investment and other financial market instrument investment is a passive investment. Be sure to check its status and continuing ability to provide the necessary goals that are meant to be achieved.