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The Weekly Bottom Line

by Sergio Mariaca on Jun 1, 2018 2:46:28 PM |Share:

Here is what happened in the Capital Markets this week.

The Weekly Bottom Line (please click link to open)

The Weekly Bottom Line, courtesy of TD Economics, includes a review of market performances, recent key economic indicators, a calendar of upcoming key economic releases, and other relevant data. The highlights from this week’s report include:

United States

  • Fears of fresh elections in Italy spooked investors, who unloaded Italian bonds – sending yields on short-term government debt skyrocketing. By the end of the week, Italy’s populist coalition was finally allowed to form a government. But far from closure, this likely marks the beginning of a new chapter that will test the Eurozone’s stability.
  • The U.S. turned up the heat on trade tensions by announcing that it would go ahead with tariffs on $50B of Chinese goods, and that it would end the exemption on steel and aluminum tariffs for Canada, Mexico and the EU.
  • By the end of the week, markets shrugged off the latest developments in Europe and on trade, supported by a string of positive U.S. data – in particular, a very healthy May payrolls gain of 223k and wage growth that accelerated to 2.7% y/y. The latest data cement the case for a Fed rate hike at its June meeting.

DISCLAIMER

This report is provided by TD Economics.  It is for informational and educational purposes only as of the date of writing, and may not be appropriate for other purposes.  The views and opinions expressed may change at any time based on market or other conditions and may not come to pass. This material is not intended to be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered specific legal, investment or tax advice.  The report does not provide material information about the business and affairs of TD Bank Group and the members of TD Economics are not spokespersons for TD Bank Group with respect to its business and affairs.  The information contained in this report has been drawn from sources believed to be reliable, but is not guaranteed to be accurate or complete.  This report contains economic analysis and views, including about future economic and financial markets performance.  These are based on certain assumptions and other factors, and are subject to inherent risks and uncertainties.  The actual outcome may be materially different.  The Toronto-Dominion Bank and its affiliates and related entities that comprise the TD Bank Group are not liable for any errors or omissions in the information, analysis or views contained in this report, or for any loss or damage suffered.

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