Weekly Update 6/8/2018 – Global Stocks Mixed Ahead of Key Meetings

USS&P 500 Index +1.6%, Dow +2.8%, Nasdaq +1.2%
EuropeSTOXX Europe 600 -0.5%, German DAX +0.3%, France CAC 40 -0.3%, U.K. FTSE 100 +0.0%
Asia: Japan Nikkei +2.4%, China Shanghai Composite -0.3%, Korea KOSPI  +0.5%
Rates/Commodities: 10-Year Treasury yield +4 basis points to 2.94%, WTI Crude Oil -0.3%, COMEX gold +0.4%

Major U.S. indexes advanced this week, though gains came on the heels of few notable catalysts. Along the way, however, both the Russell 2000 Index and Nasdaq posted new record highs after upbeat data on the services sector followed up last week’s better-than-expected reads on employment and manufacturing. On the recent data, LPL Chief Investment Strategist John Lynch noted, “Although inflation pressures increased as input costs rose, backlogs in non-manufacturing orders hit a record high and growth in services activity accelerated at rates not seen in three years, pointing to continued upside for the U.S. economy.”

Overseas, performance was more of a mixed bag as European indexes finished mostly lower on the week with figures released on the Eurozone services sector showing the rate of expansion hit an 18-month low in May, continuing the recent string of disappointing data in the region (a topic we discussed in this week’s Weekly Market Commentary). Adding to traders’ skittishness were headlines suggesting the European Central Bank (ECB) could begin serious discussions about the timetable for ending its bond purchase program when it meets next week. Asian markets fared better with most indexes in the region ending the week in positive territory, led by Japan’s Nikkei 225 Index. Meanwhile, emerging markets indexes surrendered early-week gains following a sharp selloff in Brazilian equities on Thursday that reverberated across the group as investors contemplated the potential negative ramifications of rising yields in the U.S. accompanied by dollar strength.

There will be no shortage of catalysts next week, following the likely contentious G-7 summit in Quebec over the weekend, with the U.S.-North Korea Summit kicking things off ahead of monetary policy meetings held by the Federal Reserve (expectations for a rate hike are near 100%), Bank of Japan, and ECB; along with a host of top-tier economic data. Monitor the week ahead with our Weekly Economic Calendar.


Please see the methodology and assumptions used in GWP.

IMPORTANT: The projections or other information generated by GWP regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Results may vary with each use and over time.

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

Indices are unmanaged and cannot be invested into directly. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment.

Past performance is not indicative of future results. The tax loss harvesting and other tax strategies discussed should not be interpreted as tax advice and there is no representation that such strategies will result in any particular tax consequence. Clients should consult with their personal tax advisors regarding the tax consequences of investing.

Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

The opinions voiced in this material are for general information only and are not intended to provide or be construed as providing specific investment advice or recommendations for any individual security.

This research material has been prepared by LPL Financial LLC.

To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL Financial LLC is not an affiliate of and makes no representation with respect to such entity.

Not FDIC/NCUA Insured | Not Bank/Credit Union Guaranteed | May Lose Value | Not Guaranteed by any Government Agency | Not a Bank/Credit Union Deposit

Securities and Advisory services offered through LPL Financial LLC, a Registered Investment Advisor Member FINRA/SIPC

For Client Use – Tracking #1-738628 (Exp. 6/19)