Weekly Market Update (March 19 – March 23, 2018)
Written By: Humna Wasim
Late last week on Friday the market indices all suffered a lose with decrease changes in the previous close and percentages changes. Major dips in the market indices were observed in the DJI (Dow Jones Industrial Average) which was down 424.69, Nasdaq Composite Index fell 199.69, NYSE US 100 Index decreased 186.01, and the S&P/TSX Composite Index fell by 176.19. The Dow dropped 724 points after Trump signed an executive notice that would impose tariffs on up to $60 billion in Chinese imports, which also resulted to another 425-point drop Friday. The indices which suffered a minor lose at the end of the week were the S&P 500 which fell by 55.43, TR US Index decreased by 4.90 and Thomas Reuters Equity US Index, Thomas Reuters Equity Canadian Index fell 4.90, 3.25, respectively.
Currencies market experienced a decrease beginning March 20th closed at 1.3071 and ended the week at 1.2895 making a 0.34% drop. On the other hand, the Euro and Great British pound performed with minor increases with closing at 0.0051 and 0.0036, respectively. Bitcoin is currently steady although the last close was down 1.4% but reaching an overnight peak of $8,715.31. The Financial markets also finished this week with slight dips in the regular average stock prices. Canadian banks all experiences a lower close such as BMO, RBC, TD, CIBC all respectively at 1.17, 1.43, 1.70, 1.99. The American banks also experienced negative closes with JPMorgan closing at 2.9 down from its previous 50.98USD, Bank of America closing 1.37 below last close and Wells Fargo closing at 1.54 down from previous. Overall, the stock market all around had negative finishes within sectors some worse than others.
The market worried about Donald Trumps administration beginning of a global trade war sent stocks lower therefore pushed investors to safety in bonds. Stocks are more focused on forecast and need to adjust for a period of higher rates. Technology stock were also under pressure, “Technology unfortunately led us on the way up, and is now leading us on the way down. Unfortunately, there’s nothing to take over leadership,” said Art Hogan, chief market strategist at B. Riley FBR. Hogan. Tech was down 7.9 percent due to concerns about new laws after Facebook data scandal. The Canadian oilpatch hopes to increase as commodity price push higher profits and afford companies room to offer dividend hikes and share buybacks. Investors are still unimpressed with the lack of export pipeline space for oil and gas, as pipeline capacity issue has grown worse since Energy East pipeline to Eastern Canada was cancelled. In the “trade war” United States trade representatives said Europe and other allies have a possibility of being exempt from the metal tariffs. The Fed retained its forecast for three hikes this year, the long-term is expected for 2019 and 2020 to raising rates to 2.90% from 2.75%, raising its economic forecast. Although the past week represented poor standing and political risk for investors there are many key events to watch for in the next week. Early this week watch for Dallas Fed Manufacturing, S&P Chase-Shiller home prices and later on the week will include Pending home sales and Personal home and income spending.