Overview: The first week after President Donald Trump’s Inauguration
–Background: Trump’s proposed policies:
–Stronger job markets
Consequence: Consumer Spending (70%) rose 2.5%; purchase added 1.7% point to growth; Investment and Housing improved. Investment on equipment rose at 3.1% and residential construction jumped at 10.2%.
US Stock Market: Stocks:
- S&P500 Index finished its 0.2 percent from its record set last Wednesday
- Greenback capped fifth weekly slide
- The yen weakened as Japan’s central bank stepped in to buy debts.
- 10-year treasury yields fell below 2.5%
- Gold has headed for its longest slump in 3 months
- Although GDP reports gave little reasons for investors to invest more dollars in the market, strong job market and growth optimism make investors keep adding money in.
The S&P 500 slipped 0.1 percent to 2,294.50 at 4 p.m. in New York. It rose 1 percent in the week and closed Wednesday at a record.
The Stoxx Europe 600 fell 0.4 percent following three days of gains. The measure rose 1.1 percent in the week.
Dollar Spot rate fell by 0.1%
The pound slipped 0.3 percent, paring its gain in the week to 1.4 percent weekly gain. The yen slid 0.5 percent and the euro was little changed.
The yield on 10-year U.S. Treasuries fell two basis points to 2.48 percent.
German bonds due in a decade halted a three-day slide, pushing the yield to 0.46 percent.
Japanese 10-year yields were little changed at 0.08 percent. The BOJ boosted the amount of 5-to-10-year bonds it buys in its outright purchase operations, underscoring a commitment to keep its yield-curve target.
Gold futures fell 0.1 percent to settle at $1,191.10 an ounce, the lowest price in two weeks.
Trump, Immigration and Tech
President Donald Trump’s sudden executive order on immigration on SaturdayResponds from Tech leaders:
Netflix Inc Chief Executive Reed Hastings: “It is time to link arms together to protect American values of freedom and opportunity.”
Apple Inc CEO Tim Cook: “not a policy we support” and promised to help affected employees; “We have reached out to the White House to explain the negative effect on our coworkers and our company,”
Leave employees from tech companies potentially stranded overseas and unable to return back to the US
–>Alphabet Inc’s Google urgently called back employees from overseas and told ones who might be affected by the ban not to leave the United States.