This past week saw lower volatility with U.S. and foreign equities modestly higher. China saw increased growth in the second quarter and announced a crackdown on excessive debt and speculation. Actions speak louder than words and the growth in real estate debt had a lot to do with the robust growth numbers raising concerns about the viability of this going forward. The Bank of Japan kept its policy unchanged but lowered its forecast for inflation. The European Central Bank announced that they did not discuss changes to its bond buying program at this week’s meeting but said they would do so in the fall. Currently the ECB bond buying program is scheduled to run through December. However, ECB reiterated its readiness to increase bond-buying if economic conditions worsen. The 10-year U.S. Treasury Note saw yields fall and the U.S. dollar weakened against a basket of foreign currencies. Commodities, particularly gold, were higher.
In the numbers, this week:
- China reported its gross domestic product grew 6.9% in the second quarter from a year ago.
- The International Energy Information Administration raised its oil demand forecast to grow 1.5% in 2017.
- Factset reported with 19% of the S&P 500 companies reporting the blended earnings growth rate is 7.1%.
- The Commerce Department reported:
- Housing starts overall rose 8.3% in June. This was 6.3% for single family homes and 13.9% for multifamily homes.
- Residential building permits, a measure of future housing starts, rose 7.4%
- The Labor Department reported
- First time claims for unemployment fell 15,000 to a seasonally adjusted 233,000. The four-week moving average of claims fell 2,250 to 243,750.
- Weekly pay for full-time earners in the lowest 10th percentile of wages, rose faster than any other group.
- The Energy Information Administration’s Weekly Petroleum Data report is attached.
- The Energy Information Administration reported
- Weekly field production of crude oil rose 32,000 barrels per day in the prior week.
- Natural gas in storage rose 28 Bcf last week from the prior week.
- Baker Hughes reported that oil drilling rigs decreased 1 to 764. Gas drilling rigs fell 1 to 186.
Please call us if you have any questions.
Loren C. Rex, CFP®, AIF®, MA Erik Smith
Generations Financial Planning & Wealth Management 269-441-4143
77 E. Michigan Ave, Suite 140
Battle Creek, MI 49017
Carrie Fuce, Assistant 269-441-4091
Toll Free: 800-513-8180
Visit our Website: www.genfinplan.com
Registered Representative of and securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and Generations Financial Planning & Wealth Management are separate companies and are not affiliated.
These are the opinions of Loren Rex and Erik Smith and are not necessarily those of Cambridge, are for informational purposes only, and should not be construed or acted upon as individualized investment advice.