Emerging Markets Show Strong Gains as 2017 Trading Ends
As the final week of trading for 2017 approaches, stocks in emerging markets are experiencing a positive momentum, climbing for the third consecutive week. This sector outperformed all other major asset classes, showcasing robust gains for the week ending December 22, according to a selection of exchange-traded products.
Key Developments in International Affairs and Economic Trends
South Korea anticipates North Korea to seek talks with the US: Reuters
Reports indicate North Korea is preparing for a satellite launch: IBT
Credit card spending increased during the holidays, growing at the fastest rate since 2011: Dow Jones
CEBR forecasts China will surpass the US economy by 2032: Bloomberg
US consumer spending accelerated in November: Reuters
Durable goods orders in the US rose in November while core orders slipped: MarketWatch
New home sales in the US surged significantly in November: USA Today
Kansas City Fed Manufacturing Index dipped in December but still indicates solid growth: KC Fed
US Consumer Sentiment Index remains high despite a slight decline in December: UoM
Wishing You Peace and Joy
Season’s greetings filled with peace, goodwill, and joy. Cheers!
Highlighting Noteworthy Reads on Economics in 2017
As we near the end of another year, it’s time to spotlight ten insightful books on finance, investing, and economics published in 2017. These selections were noted at various times throughout the year in The Capital Spectator’s Book Bits column, capturing the attention of your editor. Here, we present the first five recommendations, with the balance to follow next week. Happy reading!
US Inflation Trends and Treasury Market Insights
While official inflation rates in the US remain low, the Treasury market is predicting increased pricing pressures for 2018.
US Legislative and Economic Updates
Congress has approved a bill to prevent a government shutdown: NY Times
Catalonia separatists celebrate election victories: CNN
UN rebukes Trump over Jerusalem decision: Politico
US State Department evaluates options post-UN vote: The Hill
US GDP growth has been slightly revised down to 3.2%: RTT
Leading Index shows growth predictions for early 2018: CNBC
US jobless claims rose to 245k, marking the first increase in five weeks: AP
Philly Fed Manufacturing Index has rebounded in December: RTT
Truck tonnage increased by nearly 8% for the year ending in November: Scott Grannis
US Fourth-Quarter GDP Projections
The preliminary report on fourth-quarter GDP, scheduled for late January, indicates a healthy gain. However, current forecasts vary widely, predicting anything from a slight slowdown to a significant uptick compared to Q3.
Legislative and Market Updates
The House has passed the final tax bill, forwarding it to Trump: Reuters
Trump threatens to reduce aid for nations opposing his Jerusalem policy: BBC
Shots fired in the DMZ between North and South Korea: Reuters
Sweden’s central bank has concluded its bond purchases: Central Banking
A founder of a cryptocurrency has liquidated all of his assets: Bloomberg
Poland faces potential EU sanctions due to judicial reforms: Guardian
US existing home sales have reached an 11-year high in November: HousingWire
The 10-year Treasury yield has climbed to a nine-month high of 2.49%: Reuters
Positive Economic Momentum and Near-Term Outlook
The US economy continues to show signs of positive momentum, sustaining a low risk of recession and presenting optimistic short-term forecasts. With the White House preparing to enact tax-cut legislation this week, the macroeconomic landscape appears set to receive a fresh stimulus for ongoing growth. Thus, the chances of an impending recession remain negligible.
Recent Legislative Actions and Market Insights
The Senate has approved the tax-cut bill, moving it to Trump’s desk: The Hill
Trump hints at aid cuts for nations dissenting his stance on Jerusalem: BBC
Incidents of gunfire reported at the DMZ between North and South Korea: Reuters
Sweden’s central bank has halted its bond purchasing program: Central Banking
The founder of a cryptocurrency has successfully liquidated his holdings: Bloomberg
Judicial reforms in Poland could trigger EU sanctions: Guardian
US single-family housing starts have achieved a 10-year high in November: Reuters
US debt sales are anticipated to reach an 8-year high in 2018, as estimated by JPMorgan: Bloomberg
Global investors have increased cash allocations, surpassing the 10-year average: MNI
A cryptocurrency exchange in South Korea has closed its operations: CNN
The US 10-year yield has risen to 2.46%, the highest level since late October: Dow Jones
Conclusion: An Upbeat Ending to 2017
As the year wraps up, various economic indicators suggest a positive trajectory with emerging markets leading the way. With significant legislative changes on the horizon and consumer sentiments remaining strong, the outlook for 2018 appears promising.
