Categories Finance

Capital Spectator: Investing, Asset Allocation, and Economic Insights

Recently, a significant question has gained traction due to the surge in interest rates. For instance, the benchmark 10-year Treasury yield increased to 2.73% yesterday, marking the highest level in almost four years. The rise of the 2-year rate has been even more pronounced, reaching a decade high on Tuesday.
Continue reading

Trump connects his presidency to national prosperity during the State of the Union address: Bloomberg
Top points from Trump’s State of the Union address: The Hill
The Fed is poised to maintain interest rates during Yellen’s final meeting as chair: Reuters
North Korea is expected to display missiles ahead of the Winter Olympics in South Korea: CNN
Could Amazon’s entry into healthcare signify a major shift in the industry? Bloomberg
US Consumer Confidence Index climbs in December, nearing an 18-year peak: CNBC
According to Case-Shiller index: US home prices rose 6.2% in November compared to the previous year: USA Today
Should international investors be more cautious about foreign exchange risks? The Economist
Trump’s approval ratings by state — West Virginia leads while Vermont trails: Gallup

On January 30th, the benchmark 10-year rate rose to 2.70% for the first time since 2014, based on daily statistics from Treasury.gov. Contributing factors include stronger expectations for inflation and a weaker dollar. Whatever the reason, the technical outlook for the 10-year rate has recently adopted an upward trend, suggesting that this momentum will likely persist.
Continue reading

A Washington think tank projects the US budget deficit will exceed $1 trillion in 2019: Reuters
CIA Director indicates Russia may interfere in this fall’s US mid-term elections: BBC
Eurozone GDP showed a solid 0.6% growth in the fourth quarter of 2017: Bloomberg
What’s on the agenda for Trump’s State of the Union address tonight? USA Today
US consumer spending increased by 0.4% in December as the savings rate dropped to a 12-year low: Reuters
Japan’s retail spending grew by 0.9% in December, exceeding expectations: RTT
Dallas Fed manufacturing production index eased in January after reaching an 11-year high: Dallas Fed
Obamacare has lessened financial strain for young adults: Philly Fed
Rising Treasury yields could pose a risk to stocks: Bloomberg
The 10-year Treasury yield reached 2.7% for the first time since 2014: MarketWatch

Every major asset class reported gains last week, as per data from various exchange-traded products. This surge in performance reflects increased optimism, representing the first comprehensive weekly advances since last November.
Continue reading

Trump is facing a deadline to implement sanctions against Russia: Politico
Israel’s Netanyahu is in Moscow for discussions with Putin on Syria: Reuters
The Trump administration is exploring the nationalization of part of the US mobile network: Axios
The shale oil boom enhances US leverage in economics and diplomacy: NY Times
GDP increased by 2.6% in Q4, marking the slowest rise since Q1: MarketWatch
US durable goods orders surged by 2.9% in December, marking the most significant gain in six months: Bloomberg
How much longer will rising consumer confidence sustain the US economy? NY Times
The US merchandise trade deficit widened to the largest gap since 2008: Bloomberg
UK GDP growth exceeded expectations in Q4, with a 0.5% increase: RTT
For the first time in nearly a decade, all major economies are expanding: NY Times

When Things Don’t Fall Apart: Global Financial Governance and Developmental Finance in an Age of Productive Incoherence
By Ilene Grabel
Author quote via Bloomberg
Ilene Grabel, a professor at the University of Denver’s Josef Korbel School of International Studies and author of the new book When Things Don’t Fall Apart: Global Financial Governance and Developmental Finance in an Age of Productive Incoherence, argues that excessive coordination of economic policies can lead to synchronized business cycles, causing global booms and busts. A single global financial structure may allow errors to propagate more rapidly and destructively than a system with diverse components. She likens this to a forest comprised solely of one tree species; a single insect or fungus could decimate it. Grabel contends that diversity in governance enhances the safety of the financial system.
Continue reading

In today’s fourth-quarter report, economists had anticipated a 2.9% increase in GDP, according to the consensus forecast from Econoday.com. However, the Bureau of Economic Analysis reported a more modest growth of 2.6%, the slowest since the weak gain of 1.2% in Q1 of 2017. Although the latest figure is respectable, it hasn’t elicited celebrations. Moreover, a review of the quarterly data suggests that the economy’s recent performance still retains positive momentum.
Continue reading

While technology stocks continue to lead the market, recent improvements in healthcare suggest that a shift may be imminent. Based on one-year returns ranked by sector ETFs, telecom is the only sector reporting a year-over-year loss, with real estate stocks nearing the brink of negative performance.
Continue reading

Trump denies attempting to dismiss special counsel investigating the Russia probe: LA Times
Surge in demand for risk assets triggers “tactical pullback” warnings: Bloomberg
The US economy is forecasted to report brisk growth in today’s Q4 GDP update: Reuters
US Leading Index rises in December, indicating strong economic growth for the first half of 2018: CB
Weekly jobless claims in the US rose to 233,000, but remain low overall: WSJ
New home sales in the US dropped more than anticipated in December: Bloomberg
Manufacturing growth has accelerated in the Kansas City Fed region: Bond Buyer
Atlanta Fed’s updated Q4 GDP nowcast remains steady at 3.4%: Atlanta Fed

Leave a Reply

您的邮箱地址不会被公开。 必填项已用 * 标注

You May Also Like