Bulls dominated US markets last week, and 2016 losses have been erased. Further, rising crude oil prices and European markets sparked a rally in US stock markets last week. US crude oil prices rose after the International Energy Agency said that markets have “bottomed out.”
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Last Thursday, the European Central Bank surprised the markets by cutting interest rates further and expanding its bond-buying quantitative easing program in efforts to boost the sluggish European economy (FEZ). The key deposit rate was reduced by 10 basis points to -0.4%, and the monetary stimulus will be increased to 80 billion Euros starting in April. This news sent Europe markets and the euro soaring.
This week, investors turn their attention to the US Federal Reserve. Unlike the central banks in the Eurozone and Japan, the Fed is in the process of winding down its stimulus program. Experts, however, expect it won’t tighten credit this week.
Here’s a rundown of the major events in the financial sector for the week.
Investors will be watching these events in the US financial sector (XLF) to determine the trajectory of economic growth amid historically weak oil prices and tension in China, which have hurt trading revenues. Further, tighter regulations continue to remain a challenge for US banks as they struggle to remain profitable with high legal expenses.
Read on for a recap of how the financial sector performed last week.