US Economy and Credit Markets Ended Feb. 24, 2017

 
Treasuries rose across the board last week as investors deemed a Federal Reserve rate increase in March to be unlikely. In Europe, German 2 year government bonds plumbed new lows amid the political uncertainty regarding 2017 elections: Of particular interest is France and the possibility of a victory by Ms. Le Pen; who favors pulling France out of the euro. Next Tuesday, President Trump will give his first major address to a joint session of congress and both the nation and investors will be listening for detailed proposals regarding the new administrations economic agenda. Investors will be looking for any details regarding tax policy, trade relations or any infrastructure investment proposals. The address will highlight major policy agenda items for 2017 which will require collaboration between both the administration and congress as much of Trump's work to date has been focused on unilateral policy actions he can take without congressional aid or approval. Gold continued its recent advance but oil stalled amid high inventories and domestic production increases. Both of last week's existing homes and new single-family home sales reports registered increases in January amid tight supply arising from low inventories. Major economic reports (and related consensus forecasts) for the upcoming week include: Tuesday: Q4 annualized QoQ GDP (2.1%, +.2%), February Chicago Purchasing Manager survey (53, +2.7) and February Conference Board Consumer Confidence survey (111, -.8); Wednesday: Prior week MBA Mortgage Applications, Personal Income (.3%, unch.), Personal Spending (.3%, -.2%), February ISM Manufacturing (56, unch.) and January MoM Construction Spending (.6%, +.8%); Thursday: Prior week Initial Jobless Claims (245,000).
Posted on Monday, February 27, 2017 @ 9:15 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.