GLOBAL MARKET SNAPSHOT
US markets finished the day mixed as the Dow and S&P were flat-to-higher while the Nasdaq fell 0.5%. The Nasdaq has continued to see pressure as it finished the week down 0.3% and remains lower on a month-to-date basis by about 1.4%. Value has been outperforming recently with the Russell 3000 Value index outperforming the growth index by over 1.3% this month and the Dow (a loose proxy for value versus the Nasdaq) remains the strongest major index in the US for August at 3.1%. This strength seems surprising given the new $200B in Chinese tariffs will take affect beginning on Monday, and the large cap Dow constituents have a larger portion of sales from exports than does the S&P or Nasdaq. Elsewhere in the world markets were generally higher as Europe finished the day up around 0.8%, the Nikkei finished up 0.8%, Australia finished up 0.4%, and the Hang Seng rose 1.7%.
Yields across the developed world were flat-to-lower as the US held steady at 3.06% for the 10yr while Europe saw yields fall marginally. The US Curve steepened ever-so-slightly ahead of next week’s FOMC meeting.
The Dollar strengthened slightly today but remains lower on the month as international markets show some signs of stability. The Turkish Lira remains the largest gainer MTD at over 4% following the rate hiker earlier this month, though it finished the day lower by over 1.5% after the government’s new three-year plan was met with disappointment.
Crude prices were marginally higher today with WTI up about 1% and Brent up less than 20bps. Industrial Metals moved sharply higher led by copper (which rose 4%) as fears of the trade war’s potential impact continued to ease.
The macro calendar was light today, but investors are waiting on next week’s FOMC meeting where a 25bps rate hike is all but expected.
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