Rock On or Rocky End?
The equity markets were buoyed on the first trading day of 2020 as China’s central bank moved to boost their economic growth by pumping $115 billion into the China’s financial system. This move also saw Chinese stocks lead the advance to their highest level since February 2018. The Chinese economic survey also showed continuing stabilization in the Chinese manufacturing sector. The US manufacturing sector, on the other hand contracted in December, with the ISM manufacturing number falling to its lowest level since June 2009. This continues to reinforce the fact that manufacturing remains in contraction mode and we remain wary of that fact. The other concerning data is that of the initial jobless claims, which have been rising on the 4-week average basis.
Source: FRED, St Louis Federal Reserve
The equity markets pulled back on Friday amidst increased tensions between the US and Iran, and crude oil spiked by over 3%. In the week ahead, investors will get a look at jobless claims, ADP jobs numbers, non-farm payrolls and consumer credit.
We will continue to monitor the financial market conditions and keep you abreast of further developments. If you still have further questions about your investments, please feel free to contact your Wealth Advisor at Marshall & Sterling Wealth Management.
Stock investing involves risk including loss of principal.
International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.