RockCreek Daily Market Update

GLOBAL MARKET SNAPSHOT 

Equity Markets:
Global indices finished mixed on Thursday though momentum was positive. The session finished with the Americas posting solid gains (e.g., U.S. 0.8%, Canada 0.7%, Brazil 1.0%). U.S. markets experienced a cyclical rally with materials 1.7%, industrials 1.7%, and energy 1.0% leading. This afternoon S&P 500 surged 0.9% in 10 minutes on a WSJ report that U.S. officials were considering lifting its trade tariffs on China, a report that was swiftly denied by Treasury but gives an indication of how the market will react if there is a resolution to the trade issue.

Bond Markets:
Treasuries were weaker in the belly as yields in the 5- to 10-year part of the curve rose 3 bps, while credit continued to strengthen.

Currency Markets:
The U.S. dollar index was flat. British pound had its best day in over a month, rallying 0.8% as sentiment continues to seesaw on Brexit. Hungarian forint 0.6% led among emerging market crosses as markets price a more hawkish outlook for monetary policy.

Commodity Markets:
The Bloomberg Commodity Index gained 0.2%. Grains jumped on the trade headlines with soybeans and wheat finished 1.5% and 1.7% higher, respectively. Crude oil was largely unchanged on the day but rallied back from down -2.5% intraday. 

MACRO OVERVIEW

The Philadelphia Fed’s manufacturing business outlook gave a boost to the market and offset some of concern arising from yesterday’s Beige Book. The headline index for manufacturing activity in the region increased 7.9 points to 17.0, well above expectations, as 30% of manufacturers reported an increase in activity and new orders rose to a six-month high. 


 

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The information contained herein has been prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of any offer to buy or sell any security or to participate in any strategy. Nothing contained herein shall be relied upon as a promise or representation as to the past or future performance.   This material represents the views of RockCreek.  This information should not be construed as investment advice. Some of the information may be provided to discuss general market activity, industry or sector trends, or other broad-based economic, market, or political conditions.  Information and opinions are as of the date of this material only and are subject to change without notice.  RockCreek has no obligation to provide any updates or changes to such information. The opinions, forecasts, assumptions, estimates, and commentary contained in this material are based on information provided to RockCreek on both a formal and informal basis.  Further, any such opinions, forecasts, assumptions, estimates, and commentary are made only as of the date of this material, are subject to change at any time without prior notice and cannot be guaranteed as accurate.

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