Need to Know: There's a boost coming for stocks, if trade spat doesn't spoil it
There’s a lot of worries to go around, from trade tensions with China to Britain’s possible abrupt exit from the European Union and now, political turmoil in debt-laden Italy. More on that in a bit.
With that forecast in mind, the Macroeconomic Advisers team forecasts a 20% gain in the S&P 500 SPX, +1.88% this year—it’s 17% as of Thursday—and bond yields TMUBMUSD10Y, -0.69% to “trend slowly higher” but not breach 3% until the middle of 2021 at the earliest. The buzz There was a lot of international news for markets to digest. Chinese producer prices declined while consumer prices accelerated, putting Chinese authorities in a bind. Italian stocks tumbled after the call for a snap election. The U.K. economy shrank for the first time in seven years, not exactly a great backdrop for the British government to negotiate with the EU, while the Japanese economy was stronger than expected.
Interestingly, while money is flowing out of stocks — $24.9 billion, including $12.4 billion on Monday alone—the flows of $3.6 billion into bonds was the least since Jan. 2016, according to the BAML data.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Wall Street opens higher on upbeat China data, firming yuanU.S. stocks opened higher on Thursday, as better-than-expected trade data from C...
Read more »
Wall Street drops as bond market stokes recession fearsU.S. stocks slipped on Wednesday, as investors reeling from rising trade tension...
Read more »
Wall Street on the rise for third day after upbeat dataU.S. stocks surged on Thursday as better-than-expected domestic and Chinese data...
Read more »
Futures turn lower as investors flock to bonds, goldU.S. stocks futures turned lower on Wednesday after investors flocked to safe-ha...
Read more »
Airlines can't bar pit bulls or other breeds from cabins, feds sayThe U.S. Department of Transportation said that carriers can’t bar certain dog breeds because airlines assume they are dangerous.
Read more »
China Moves To Stabilize Yuan After Letting It Weaken To 11-Year LowIt comes after U.S. and Asian stocks dropped sharply earlier on Tuesday, after the U.S. officially branded China a 'currency manipulator.'
Read more »