Weeks go by and look the same for the U.S. equities that continued their winning streak in the last week of August. The S&P 500 and Nasdaq indices hit all-time highs for the fourth session in a row on Wednesday, helped by the rally in tech stocks (Alphabet and Amazon more specifically, the latter moving closer to Apple into the $1 trillion capitalization club) and a U.S. GDP growth rate revised higher (4.2 percent) in the second quarter of 2018, according to the “second” estimate released by the Bureau of Economic Analysis. Furthermore investors hoped that a global trade war could be avoided in the wake of the bilateral agreement betwen Mexico and the Trump administration, awaiting progress on talks between the U.S. and Canada. Unfortunatley market sentiment was eroding at the end of the week as Bloomberg, citing six unidentified sources, reported on Thursday that President Trump was ready to impose tariffs on $200 billion in Chinese imports, with a deadline set at September 6th. This news pushed traders to sell off risky assets and buy safe haven currencies (USD and JPY). European stocks finished the week in negative territory (MSCI EMU -56bps) by contrast with U.S. stocks which moved higher once again (S&P500 up +93bps, Russell 2000 +87bps). German and U.S. Treasury yields were virtually unchanged over the week.
Find the full report here: https://www.trackinsight.com/weekly-flow-report/2018-08-31/global